Knack Packaging’s initial public offering (IPO) will open for subscription on July 1 and close on July 3. The Ahmedabad-based packaging company plans to raise Rs 439.5 crore through a combination of a fresh issue and an offer for sale (OFS).
The public issue comprises a fresh issue of shares worth Rs 380 crore and an OFS of Rs 59.5 crore by existing shareholders. The company is scheduled to list on the NSE and BSE on July 8.
The IPO price band has been fixed at Rs 161-170 per share. Investors can bid for a minimum of 88 shares, requiring an investment of Rs 14,960 at the upper end of the price band.
The basis of allotment is expected to be finalised on July 6, while refunds for unsuccessful applicants and credit of shares to successful bidders' demat accounts are likely to take place on July 7.
Systematix Corporate Services, IDBI Capital Markets & Securities and Pantomath Capital Advisors are the book-running lead managers, while MUFG Intime India is the registrar to the issue.
Up to 50 per cent of the net offer has been reserved for qualified institutional buyers (QIBs), while at least 15 per cent has been allocated to non-institutional investors (NIIs). Retail investors will get at least 35 per cent of the issue.
About Knack Packaging
Founded in 2013, Knack Packaging manufactures printed and laminated woven polypropylene bags used across industries such as food, pet food, agriculture, fertilisers, cement, chemicals and building materials. The company operates in Gujarat and has four manufacturing facilities in the Mehsana district.
Its products include pinch bottom bags, block bottom bags, gusset bags and retail shopping bags. The company says these products improve product protection, branding and operational efficiency.
Knack serves domestic customers such as KRBL, DCM Shriram, Drools and Baba Agro Food, and exports to 68 countries. The United States, Mexico and South Africa together account for more than one-third of exports.
The company has developed over 73,000 printing cylinders and caters to more than 1,950 customers globally.
Promoters of the company are Alpesh Tulsibhai Patel, Pravinkumar Ambalal Patel and Rashminbhai Tulsibhai Patel. Post-IPO, promoter ownership will decline to 70.59 per cent after the issue from 89.6 per cent earlier.
Knack Packaging IPO: Objectives Of The Issue
The company plans to use the fresh issue proceeds primarily to fund its expansion plans. Of the total amount, Rs 320 crore will be used to partially finance the setting up of a new manufacturing facility at Borisana in Kadi, Mehsana district of Gujarat.
The remaining proceeds will be used for general corporate purposes. The new facility is expected to increase the company's production capacity and support future growth in both domestic and export markets.
Knack Packaging IPO GMP Today
As of June 26, Knack Packaging’s grey market premium (GMP) was at Rs 11.5 per share. Based on the upper end of the price band at Rs 170, the GMP indicates a potential listing price of Rs 181.50. This suggests a potential gain of nearly 7 per cent over the issue price.
However, investors should note that GMPs merely reflect the current sentiment in the unofficial market and can change ahead of listing. Investors should consider the company's fundamentals, valuations and risks instead of relying solely on grey market trends.
Knack Packaging’s Financial Performance
Knack Packaging has reported steady growth in its business over the past three financial years. The company's total income rose to Rs 843.77 crore in FY26 from Rs 747.38 crore in FY25 and Rs 659.01 crore in FY24. Ebitda increased to Rs 172.29 crore in FY26, compared with Rs 144.34 crore a year ago and Rs 101.37 crore in FY24.
Profit after tax also grew consistently, rising to Rs 92.72 crore in FY26 from Rs 73.81 crore in FY25 and Rs 45.98 crore in FY24.
As of March 31, 2026, the company reported total assets of Rs 595.25 crore and a net worth of Rs 308.19 crore. It had reserves and surplus of Rs 208.19 crore, and a net debt of Rs 192.47 crore.
The company reported a return on equity (ROE) of 35.75 per cent and return on capital employed (ROCE) of 46.71 per cent for FY26. At the upper price band of Rs 170, the IPO is valued at a price-to-earnings multiple of 18.30 times based on FY26 earnings.
Knack Packaging: Key Strengths And Risks
Knack Packaging’s key strengths, as highlighted in the RHP, include its strong presence in the specialised woven polypropylene packaging space and a fairly diversified customer base. The company also has a solid export footprint, shipping products to 68 countries and catering to sectors like food, agriculture, pet food, and industrial goods. Its integrated manufacturing setup, along with in-house printing facilities, gives it better control over production and allows for more customised offerings.
At the same time, the business carries certain risks. A large part of its revenue comes from exports, which makes it vulnerable to changes in overseas demand and fluctuations in foreign exchange rates. The planned expansion of manufacturing capacity could also face execution challenges. On top of that, raw material price volatility, especially polypropylene, can affect margins. The company also operates in a highly competitive packaging industry and depends on demand from a few key end-use sectors, which adds another layer of risk to its growth outlook.
