Knack Packaging Shares Make Strong Debut, Packaging Company’s Stock Lists With Over 10% Premium On NSE and BSE

Knack Packaging shares made their debut on the NSE and BSE on July 8 with decent gains. Knack Packaging shares made their debut on the NSE at Rs 188 apiece, up 10 per cent compared to the upper end of the price band at Rs 170 apiece. On the other hand, Knack Packaging shares made their debut on the BSE at Rs 186 apiece, up by 9.41 per cent.

Knack Packaging Listing Day Gain

Applicants who were allotted a minimum of one lot or 88 shares of Knack Packaging would have gained at least Rs 1,584 (Rs 188 - Rs 170 x 88) once the packaging company’s shares listed on the exchange. The Gujarat-based company’s total market capitalisation stood at approximately Rs 2,300.47 crore following the debut and 6.49 million shares of the company changed hands.

Knack Packaging IPO: Offer Size

Knack Packaging raised Rs 439.50 crore through its public issue. The flexible packaging solutions provider’s issue consisted of a fresh issuance of Rs 380 crore (around 22.4 million shares) and an offer for sale (OFS) of Rs 59.50 crore. The Knack Packaging IPO price band was fixed at Rs 161 to Rs 170 per share.

Knack Packaging IPO: Subscription

The minimum lot size for application for retail investors was fixed at 1 lot or 88 shares, which aggregated to an investment of Rs 14,960. Knack Packaging’s public offer was oversubscribed 83.33 times during its subscription period, which started on July 1 and ended on July 3. Investors across categories placed bids for over 1.58 billion shares compared to the 18.9 million shares offered for subscription.

The non-institutional investors (NII) quota for the packaging manufacturer was booked 139.81 times. The Knack Packaging IPO was booked 20.07 times in the retail individual investor category. The issue was heavily booked 154.34 times in the Qualified Institutional Buyers (QIB) category. Employees of the company booked their quota 9.27 times.

Knack Packaging: Promoters

Knack Packaging’s promoters held an 89.60 per cent stake in the company before the public issue. The promoters, which include Alpesh Tulsibhai Patel, Pravinkumar Ambalal Patel, and Rashminbhai Tulsibhai Patel, will see their stake reduced post-IPO to 70.59 per cent.

Knack Packaging IPO: Objective

Knack Packaging will use the funds raised via the initial public offering primarily to fund the capital expenditure for setting up a new manufacturing facility at Borisana in Kadi, Mehsana, Gujarat, with the remaining proceeds allocated for general corporate purposes.