The Knack Packaging IPO, which opened for subscription on Wednesday, 1 July, will close on Friday, 3 July. Ahead of the public issue, the packaging solutions provider raised ₹131.25 crore from anchor investors.
The Knack Packaging IPO price band has been fixed at ₹161-170 per equity share with a face value of ₹10. The IPO lot size is 88 equity shares, and investors can bid in multiples of 88 shares thereafter.
The public issue has reserved up to 50% of the net offer for Qualified Institutional Buyers (QIBs), at least 15% for Non-Institutional Investors (NIIs), and at least 35% for retail investors.
Tentatively, the Knack Packaging IPO allotment is expected to be finalised on Monday, 6 July. Refunds are likely to be initiated and shares credited to successful applicants’ demat accounts on Tuesday, 7 July, while the Knack Packaging share price is scheduled to list on the BSE and NSE on Wednesday, 8 July.
Knack Packaging manufactures printed and laminated woven polypropylene (PLWPP) bags and PLWPP pinch-bottom bags, catering to industries such as food products, animal nutrition, and pet food.
Knack Packaging IPO GMP today
Knack Packaging IPO GMP today is +28. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of the Knack Packaging share was ₹198 apiece, which is 16.47% higher than the IPO price of ₹170.
Considering the grey market trends over the previous ten sessions, today’s IPO GMP indicates an upward trajectory and suggests a robust listing. The minimum GMP recorded is ₹11.50, while the maximum is ₹28, according to experts.
Knack Packaging IPO review
Nirmal Bang Institutional Equities has assigned a ‘Subscribe’ rating to the Knack Packaging IPO, citing the company’s strong market position, integrated business model and reasonable valuation. The brokerage noted that Knack Packaging holds around 10.1% market share in India’s printed and laminated woven polypropylene (PLWPP) bulk bags segment and operates a fully integrated value chain—from polypropylene granules to finished bags—which has enabled it to deliver an EBITDA margin of around 18%, higher than listed peers such as TCPL Packaging and Time Technoplast.
The brokerage also highlighted the company’s diversified customer base, with 94% of FY26 revenue coming from existing customers and no single customer contributing more than 25% of revenue. It expects the planned capacity expansion—from 43,300 MTPA to 76,000 MTPA by October 2027—to drive future growth. At 22.4x FY26 earnings and around 15x EV/EBITDA, Nirmal Bang believes the IPO is reasonably valued compared with peers.
Swastika Investmart has recommended the issue with a ‘Subscribe’ rating from a short-term perspective, citing the company’s healthy financial growth, improving profitability, strong return ratios and healthy operating margins. According to the brokerage, the IPO is valued at a pre-issue P/E of around 18.3x FY26 earnings, which it considers reasonable relative to peers.
The brokerage also highlighted Knack Packaging’s fully integrated manufacturing operations, a library of more than 73,000 customised printing cylinders, and a portfolio of over 13,000 SKUs, which provide a strong competitive advantage. However, it cautioned that customer concentration, the absence of long-term supplier contracts and dependence on a new manufacturing facility for future growth remain key execution risks. Swastika advised long-term investors to reassess the company after its post-listing performance.
Anand Rathi Research has assigned a ‘Subscribe for Long Term’ rating to the IPO, saying the issue appears fairly priced at 22.4x FY26 earnings, implying a post-issue market capitalisation of around ₹2,080 crore.
While acknowledging risks related to raw material price volatility, customer concentration and intense competition in the packaging industry, the brokerage believes Knack Packaging is well positioned to benefit from structural growth in flexible packaging, supported by its backward integration, manufacturing scale and export presence.
Canara Bank Securities has assigned a ‘Subscribe’ rating for long-term investors. The brokerage noted that the IPO includes a sizeable offer-for-sale of 35 lakh promoter shares, which warrants monitoring from a governance and promoter dilution perspective.
It added that although the company trades at a relatively higher valuation, with a P/E of 18.34x, the premium is justified by its superior return on equity (RoE) and return on capital employed (RoCE) compared with peers. Overall, Canara Bank Securities believes the company’s business quality and favourable industry tailwinds support a positive long-term investment case.
Sushil Financial Services has recommended subscribing to the IPO, describing Knack Packaging as one of the more promising offerings in the current IPO market.
The brokerage highlighted the company’s EBITDA margin of 20.42%, which is higher than many peers, along with its export presence, differentiated product portfolio and clear capacity expansion roadmap. It also pointed to the company’s healthy return on invested capital (RoIC) of 33.41%. While acknowledging risks such as customer concentration, execution of the expansion project and a lengthening working capital cycle, Sushil Financial Services believes these risks are manageable and maintains a conviction ‘Subscribe’ recommendation at the offered valuation.
Knack Packaging IPO subscription status
Knack Packaging IPO subscription status was 7.21x on day 2, so far. The retail portion is subscribed 4.23x, and NII portion has been booked 19.22x, QIBs portion received 3.48x bids.
The company has received bids for 13,68,24,424 shares against 1,89,64,018 shares on offer at 17:00 IST, according to BSE data.
Knack Packaging IPO details
The Knack Packaging IPO comprises a fresh issue of equity shares worth ₹380 crore and an offer-for-sale (OFS) of up to 35 lakh equity shares by existing shareholders, aggregating to ₹59.5 crore.
The company intends to utilise the net proceeds from the fresh issue primarily to establish a new manufacturing facility at Borisana, Kadi, in Gujarat’s Mehsana district, with the balance allocated to general corporate purposes.
Systematix Corporate Services Ltd., IDBI Capital Markets & Securities Ltd., and Pantomath Capital Advisors Pvt. Ltd. are the book-running lead managers to the issue.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
