Knack Packaging IPO: ₹439.50 Crore Issue Opens Today | IPO Details, GMP, Financials

1 Jul 2026 , 01:54 PM

Knack Packaging Ltd. has launched its initial public offering (IPO), aiming to raise ₹439.50 crore through a book-built issue comprising a fresh issue and an offer for sale. The IPO opens on July 1, 2026, and closes on July 3, 2026, with listing expected on July 8, 2026 on both NSE and BSE.

The company, an integrated packaging solutions provider, operates in the fast-growing industrial and export packaging segment with a strong focus on innovation, sustainability, and global markets.

IPO Structure and Issue Details

The Knack Packaging IPO is a combination of fresh capital raising and shareholder exit:

• Total Issue Size: ₹439.50 crore
• Fresh Issue: ₹380 crore (2.24 crore shares)
• Offer for Sale (OFS): ₹59.50 crore (0.35 crore shares)
• Face Value: ₹10 per share
• Listing: NSE & BSE

The IPO is structured to support expansion while providing partial exit to existing shareholders.

Price Band and Investment Details

The price band for the IPO is set at ₹161 to ₹170 per share.

• Lot Size: 88 shares
• Retail Minimum Investment: ₹14,960 (at upper price band)
• sNII Investment: ₹2,09,440 (14 lots)
• bNII Investment: ₹10,02,320 (67 lots)
• Employee Discount: ₹16 per share

 

IPO Timeline

• IPO Open: July 1, 2026
• IPO Close: July 3, 2026
• Allotment Date: July 6, 2026
• Refund/Credit of Shares: July 7, 2026
• Listing Date: July 8, 2026

 

Company Overview

Incorporated in 2013, Knack Packaging Ltd. is engaged in manufacturing Printed and Laminated Woven Polypropylene (PLWPP) bags, widely used across industrial and consumer packaging applications.

Its products serve multiple industries including:

• Food and Pet Food
• Agriculture and Fertilizers
• Cement and Construction Materials
• Chemicals, Detergents, and Minerals

The company operates as an integrated packaging solutions provider with capabilities spanning design, cylinder development, and large-scale manufacturing.

Global Presence and Client Base

Knack Packaging has a strong export-driven business model:

• Presence in 68 countries
• Exports contribute significantly to revenues
• Key export regions include the United States, Mexico, and South Africa (35.19%)
• Serves 1,950+ customers globally

Major clients include:

• KRBL Limited
• DCM Shriram Limited
• Drools Pet Food
• Baba Agro Food
• Global players such as Cargill and others

The company has developed over 73,000 printing cylinders and manages more than 13,000 SKUs, reflecting its large-scale operational capability.

Financial Performance (Strong Growth Trend)

Knack Packaging has reported consistent financial growth over recent years:

• Revenue (FY26): ₹843.77 crore (↑13% YoY)
• PAT (FY26): ₹92.72 crore (↑26% YoY)
• EBITDA (FY26): ₹172.29 crore

Balance Sheet Snapshot:

• Total Assets: ₹595.25 crore
• Net Worth: ₹308.19 crore
• Total Borrowings: ₹192.47 crore

The company has demonstrated improving profitability and expanding operational scale.

IPO Objective

The proceeds from the IPO will be primarily used for expansion:

• ₹320 crore: Setting up a new manufacturing facility in Borisana, Gujarat
• Remaining funds: General corporate purposes

The expansion is expected to enhance production capacity and support future export growth.

GMP Trend and Listing Expectations

The Grey Market Premium (GMP) for Knack Packaging IPO has shown steady movement:

• Latest GMP: ₹27 premium
• Estimated Listing Price: ₹197 (~15–16% gain)
• Subscription Trend: ~1.07x

Market indicators suggest moderate listing gains, supported by steady demand and improving sentiment.

Key Investment Highlights

• Strong export-led packaging business model
• Consistent revenue and profit growth
• High return ratios (ROE & ROCE)
• Expanding global customer base
• Capacity expansion through Gujarat facility
• Moderately leveraged balance sheet

 

Risk Considerations

• Valuation appears relatively premium (P/B ~5.5)
• Moderate leverage (Debt/Equity 0.62)
• Export dependency may expose currency and demand risks
• SME/packaging sector cyclicality

 

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