Shares of Knack Packaging surged up to 10% on Friday, trading at ₹215.23 on the National Stock Exchange, following a significant domestic institutional purchase. According to reports from Moneycontrol, Bank of India Mutual Fund acquired 7 lakh shares of the flexible packaging manufacturer, representing a 0.57% stake, at ₹196.59 per share. The transaction, executed through a bulk deal on the exchanges, is valued at ₹13.76 crore. Latest reports confirm that BofA Securities Europe SA also acquired a 0.58% stake in the company for ₹13.34 crore, highlighting strong institutional confidence in the company's growth prospects.
The Ahmedabad-based company's shares were listed on July 8 at ₹188 per share on the NSE, recording a 10.59% premium over the IPO issue price of ₹170. As reported by Moneycontrol, on the BSE, the stock opened at ₹186, a 9.41% premium. The listing performance exceeded grey market expectations, where shares were indicating a listing price of approximately ₹179. At the time of publishing this article at 12:30 pm on July 10, Knack Packaging shares were trading at ₹215.23, recording an intraday gain of ₹20.52, or 10.54%, over the previous session's closing price.
The strong debut followed an overwhelming response to the company's initial public offering, which remained open for subscription from July 1 to July 3. According to Moneycontrol, the ₹439.5-crore issue was subscribed 83.33 times overall, with Qualified Institutional Buyers bidding 154.34 times their reserved portion, Non-Institutional Investors at 139.81 times, and retail investors at 20.07 times. The company now commands a market capitalization of approximately ₹2,381 crore.
Knack Packaging, headquartered in Ahmedabad, is an integrated, innovation-driven and export-oriented packaging solutions provider. As reported by Moneycontrol, the company specializes in manufacturing customized Printed and Laminated Woven Polypropylene (PLWPP) bags and PLWPP pinch-bottom bags, catering to sectors including food products and pet foods. The company exports to 71 countries and serves over 1,950 clients globally, holding an estimated 10.1% share of India's flexible bulk PLWPP bags market. Its client roster includes KRBL, Drools, DCM Shriram and Baba Agro Foods, as well as international brands such as Cargill. The company is also one of the early movers in the manufacturing of BOPP/PLWPP bags and the first company in India (and Asia) to provide laser cut and easy-open feature integrated into their PLWPP pinch bottom bags.
