Knack Packaging's IPO, opening today, includes a fresh issue of Rs 380 crore and an offer for sale of up to Rs 59.5 crore by existing shareholders. The price band is set at Rs 161-170 per share, with a minimum bid of 88 shares. The stock is expected to list on the BSE and NSE on July 8.
The company, a manufacturer of Printed and Laminated Woven Polypropylene bags, exports to 71 countries and serves over 1,950 customers globally. Knack Packaging holds an estimated 10.1% market share in India's flexible bulk PLWPP bags sector. Its integrated manufacturing model spans the entire production chain, from polypropylene processing to printing and bag conversion.
For FY26, Knack Packaging reported a revenue of Rs 823.4 crore, up from Rs 736.5 crore in the previous year. Net profit rose to Rs 92.8 crore from Rs 73.8 crore in FY25, while EBITDA improved to Rs 152 crore, with margins expanding to 18.5%.
The IPO proceeds will primarily fund a new manufacturing facility in Borisana, Gujarat, with Rs 320 crore allocated for capital expenditure. The remainder will be used for general corporate purposes.
Brokerages have shown optimism, with Choice Broking assigning a "Subscribe for Long Term" rating, citing the company's strong competitive position and financial performance. Anand Rathi also recommends "Subscribe -- Long Term," highlighting the company's integrated model and export presence.
The IPO is valued at around 22.4 times FY26 earnings at the upper price band, considered fair by brokerages. A 15% grey market premium suggests strong investor interest.
Background
Knack Packaging's IPO comes at a time when the Indian packaging industry is witnessing significant growth, driven by increasing demand for flexible packaging solutions. The company's strong export presence and integrated manufacturing capabilities position it well to capitalize on this trend.
As Knack Packaging expands its manufacturing capabilities and international reach, investors should monitor its growth trajectory and market response post-listing.
