The Knack Packaging IPO has seen strong demand on its third and final day of bidding, with the issue being subscribed 8.34 times against the 1.89 crore shares on offer. The retail investor portion was booked 4.63 times, indicating steady participation from individual investors.
Investor sentiment remains upbeat, with shares trading at a premium of around 17% over the upper end of the price band in the grey market, suggesting the potential for a healthy listing gain if current trends continue.
The IPO comprises a fresh issue of Rs 380 crore and an offer for sale of up to Rs 59.5 crore by existing shareholders, with a price band fixed at Rs 161-170 per share and a minimum application size of 88 shares.
Knack Packaging is set to list on both the BSE and NSE, with the tentative listing date scheduled for July 8.
The company’s financial performance has been improving, with revenue from operations increasing to Rs 823.4 crore in FY26 from Rs 736.5 crore in the previous year, and net profit rising to Rs 92.8 crore from Rs 73.8 crore in FY25.
The company plans to use the fresh issue proceeds primarily to fund the construction of a new manufacturing facility at Borisana in Gujarat, with around Rs 320 crore earmarked for capital expenditure.
Choice Broking has assigned a Subscribe for Long Term rating to the IPO, citing the company’s strong competitive position, export presence, and consistent financial performance.
Related: Why it is easier than ever to start a business nowadays?
Anand Rathi has also recommended Subscribe — Long Term on the issue, noting the company’s integrated manufacturing model, strong export presence, and growing demand for value-added packaging products.
Knack Packaging is an integrated packaging solutions manufacturer engaged in producing Printed and Laminated Woven Polypropylene (PLWPP) bags, including pinch-bottom bags used across industries such as food grains, flour, sugar, pet food, fertilizers, chemicals, detergents, cement, and construction materials. Its products cater to a wide range of industries.
It exports to 71 countries and serves over 1,950 customers globally, with an estimated 10.1% market share in India’s flexible bulk PLWPP bags segment. The company’s customer base is diverse and widespread.
Its customer base includes companies such as KRBL, Drools, DCM Shriram, Baba Agro Foods, while internationally it serves clients including Cargill and other global brands. The company has established relationships with prominent clients.
Investors are advised to assess their financial goals and risk tolerance before investing in the IPO. They should consider their overall financial plan, including how to make a career plan that aligns with their investment decisions.
For more information on wealth management, visit wealth management to learn more about creating a solid strategy for your business.
Leave a Reply