Popees Baby Care India Ltd (formerly Hari Govind International Ltd) has approved a Rs 511.33-crore share-swap transaction to acquire a 99.31% stake in Popees Baby Care Products Ltd.
Popees Baby Care Products reported revenue from operations of Rs 161.93 crore in FY26, up 19.7% from Rs 135.30 crore in FY25.
The transaction marks a strategic move to align the Popees brand and its operating business with the listed entity, providing access to capital markets to support its expansion plans.
Popees plans to take its product range to a wider national market beyond South India, with a target of building a network of 1,000 stores over the next four years, alongside plans to enter GCC markets. Its existing manufacturing network provides the foundation for this rollout without an immediate need for major additional capital expenditure.
The brand currently operates 116 Exclusive Brand Outlets (EBOs), with its Irinjalakuda outlet marking the 116th store in its retail network. Expanding beyond South India, the brand has opened an outlet in Chandigarh.
Established in 2003 by Shaju Thomas, Popees is a Kerala-based integrated baby care and kidswear brand. The company operates three manufacturing facilities across Kerala, Karnataka and Tamil Nadu, with a combined installed production capacity of approximately nine lakh sets per month.
Shaju Thomas, Managing Director, said, “This proposed share-swap transaction marks an important milestone in Popees’ growth journey. With a diversified product portfolio, manufacturing capabilities across three states and a brand built over more than two decades, we are well positioned to reach more families across India.”
The company’s portfolio includes newborn and children’s clothing, diapers, wipes, toiletries, infant essentials, maternity wear, footwear and other baby care products.
The board approved the proposed acquisition at a meeting held on October 24, 2026. As part of the share-swap arrangement, Popees Baby Care India will issue up to 2,60,44,323 equity shares and 98,53,471 fully convertible warrants, aggregating approximately Rs 511.33 crore. The warrants will be convertible into equity shares within 18 months of allotment.
Following the proposed transaction, the promoter holding in the listed entity is expected to stand at 69.63%.
The board has also approved a proposal to increase the authorised share capital of Popees Baby Care India from Rs 10.25 crore to Rs 47 crore, subject to shareholder approval.
The proposed acquisition and preferential issue are subject to shareholder and other applicable regulatory approvals. The transaction will be placed before shareholders for approval at the extraordinary general meeting scheduled for November 18, 2026, along with the requisite stock exchange approvals.
