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Popees Baby Care Approves 511 Crore Rupee Reverse Takeover to Fund Retail Expansion

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Popees Baby Care Approves 511 Crore Rupee Reverse Takeover to Fund Retail Expansion

Popees Baby Care India will acquire a 99.31 per cent stake in Popees Baby Care Products through a 511.33 crore rupee share-swap deal. The transaction folds the unlisted operating business into the Bombay Stock Exchange-listed entity, clearing the path to tap equity markets for retail expansion.

Under the terms agreed by the board on October 24, 2026, the listed firm will issue up to 2.60 crore equity shares and 98.53 lakh fully convertible warrants, aggregating approximately 511.33 crore rupees. Stock exchange filings show the warrants must be converted into equity shares within 18 months of allotment, ultimately lifting promoter ownership in the listed vehicle to 69.63 per cent.

The transaction acts as a reverse merger for the Kerala-based manufacturer. The listed shell, formerly known as Hari Govind International, had not carried on active commercial operations for years while searching for a new corporate purpose. Folding the operating assets into this vehicle allows the company to bypass the procedural lag of a fresh initial public offering.

Popees Baby Care Products generated 161.93 crore rupees in revenue from operations during the financial year ending March 2026, up 19.7 per cent from 135.30 crore rupees in the prior fiscal year. To accommodate the massive influx of swap shares, the board also approved an expansion of the company’s authorised share capital from 10.25 crore rupees to 47 crore rupees.

The swap values the operating business at a sharp premium to the listed shell’s historical trading levels. 35 crore rupees. 44 rupees, management is betting that public investors will back the company’s retail trajectory once the manufacturing assets appear on the consolidated balance sheet.


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