The Knack Packaging Ltd IPO achieved oversubscription of 83.33 times on Day 3, demonstrating exceptional investor interest in the packaging solutions provider. According to Business Standard, the IPO received bids for 1,58,02,77,600 shares against 1,89,64,018 shares on offer, with the issue closing at 5 PM on July 3, 2026. The subscription pattern showed retail investors subscribed 20.07 times, non-institutional investors outperformed with 154.34 times subscription, while Qualified Institutional Buyers (QIBs) subscribed 139.81 times. This strong response comes after the company successfully raised ₹131.25 crore from 14 anchor investors on June 30, 2026, allocating 77.20 lakh shares at ₹170 per share. The market lot is set at 88 shares with reservation up to 50% for qualified institutional buyers, 15% for non-institutional investors, and not less than 35% for retail investors, along with a reservation of up to ₹2 crore for employees.
The grey market premium (GMP) for Knack Packaging shares is currently commanding around ₹30, indicating strong investor confidence ahead of listing. As per Moneycontrol, the GMP today is +30, 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 ₹200 which is 17.65% higher than the IPO price of ₹170. The allotment for the IPO is expected to be finalised on Monday, July 6, while the listing on the bourses, NSE and BSE, is likely to be on July 8 as per the tentative schedule. The IPO will remain open until July 3, 2026, with shares priced at a price band of ₹161-170 per equity share. The public issue comprises a fresh issue of ₹380 crore and an Offer for Sale (OFS) of ₹59.50 crore, with the company targeting to raise ₹439.5 crore through the issuance of fresh shares.
The company has demonstrated robust financial growth with net profit increasing to ₹92.72 crore from ₹73.8 crore in FY25, while EBITDA improved to ₹152 crore with EBITDA margins expanding to 18.5%. As per The Hindu BusinessLine, the Gujarat-based company reported revenues of ₹823.43 crore for the twelve months ended March 31, 2026. This strong performance reflects the company's integrated operations and export-led business model. The company exports to 71 countries and serves over 1,950 customers globally, with its customer base including companies such as KRBL, Drools, DCM Shriram, Baba Agro Foods domestically, and internationally serving clients including Cargill and other global brands. The company has delivered strong growth with Revenue/EBITDA/PAT CAGR of 12.2%/25.2%/42.8% over FY24–26. According to DRChoksey Report, the company demonstrates superior unit economics with EBITDA margin of 20.4% versus peer average of ~17.2%, and PAT margin of 11.0% versus peer ~7.1%, supported by its ~96% revenue from premium PLWPP segments.
The company plans to utilise ₹320 crore from the net proceeds towards funding capital expenditure towards setting up of new manufacturing facility at Borisana situated at Kadi, Mehsana, Gujarat, estimated to be ₹435 crore and the balance amount towards general corporate purposes. The Offer for Sale comprises up to 35 lakh equity shares by selling shareholders, including up to 6.75 lakh shares by Alpesh Tulsibhai Patel, up to 3 lakh shares by Pravinkumar Ambalal Patel, and up to 6.75 lakh shares by Rashminbhai Tulsibhai Patel (promoters), and up to 2.875 lakh shares by other selling shareholders. Systematix Corporate Services Limited, IDBI Capital Markets & Securities Ltd., and Pantomath Capital Advisors Pvt. Ltd. are the book-running lead managers for the offer, while MUFG Intime India serves as the registrar. Knack Packaging operates a manufacturing facility in Gujarat with an installed capacity of 43,300 MTPA and is setting up a new plant in Mehsana, Gujarat, to expand its production capacity. Headquartered in Ahmedabad, Knack Packaging is an integrated, innovation-driven and export-oriented packaging solutions provider. It manufactures customised Printed and Laminated Woven Polypropylene (PLWPP) bags, and PLWPP pinch bottom bags, catering to sectors including food products and pet foods.
Brokerages have broadly recommended subscribing to the IPO, citing the company's strong market position, healthy financials, expansion plans, and favourable industry outlook. Geojit Investments has assigned a 'Subscribe' rating, noting that at the upper price band of ₹170, the stock is valued at approximately 22.4 times FY26 earnings, which it considers reasonable given the company's growth trajectory, diversified end-user base, and international presence. The firm cited strong return ratios — ROE of 36% and ROCE of 27% as additional positives for medium- to long-term investors. Choice Broking and Anand Rathi have recommended subscribing to the issue for the long term, with Choice Broking noting that the company commands around 10.1% market share in India's PLWPP bulk bags market and operates a fully integrated value chain that has helped deliver an EBITDA margin of around 18%, higher than listed peers such as TCPL Packaging and Time Technoplast. Anand Rathi has also recommended 'Subscribe -- Long Term' on the issue, believing the company is well positioned in the organised packaging industry with an integrated manufacturing model, strong export presence and growing demand for value-added packaging products. Canara Bank Securities has assigned a 'Subscribe' rating for long-term investors, noting that the IPO includes a sizeable offer-for-sale of 35 lakh promoter shares, which warrants monitoring from a governance and promoter dilution perspective. Sushil Financial Services has recommended subscribing to the IPO, describing Knack Packaging as one of the more promising offerings in the current IPO market, highlighting the company's EBITDA margin of 20.42%, healthy return on invested capital (RoIC) of 33.41%, and clear capacity expansion roadmap.
