Knack Packaging will launch its ₹440 crore initial public offering for subscription from July 1 to July 3, with shares priced in the band of ₹161 to ₹170 per share. According to The Hindu BusinessLine, the issue comprises a fresh issue of shares valued at ₹380 crore and an offer-for-sale (OFS) component of ₹60 crore by offloading up to 35 lakh equity shares by the promoters. The company plans to sell nearly 25.9 million shares at the fixed price band. The minimum investment for retail investors is set at 88 shares and multiples thereof. The price band sets the company's valuation at ₹2,080 crore at the upper end, with one lot costing ₹14,960 at the upper price band. The fresh issue size has been reduced from the earlier planned ₹475 crore, while the offer for sale has been cut from 70 lakh shares, as disclosed in the Draft Red Herring Prospectus filed with SEBI in September 2025.
As reported by The Hindu BusinessLine, the funds generated from the IPO will be utilized for establishing a new manufacturing unit at Gujarat's Borisana, Kadi in Mehsana. The company intends to utilize ₹320 crore from the fresh issue proceeds to partially fund the establishment of a new manufacturing facility at Borisana, Gujarat. The facility will be used to manufacture printed and laminated woven polypropylene (PLWPP) bags and PLWPP pinch-bottom bags. "The total estimated cost to establish the project site is ₹364.9 crore, out of which the company has deployed ₹12.8 crore as of June 23, 2026, and will deploy ₹32 crore through internal accruals. The balance cost of approximately ₹320 crore is expected to be funded through the net proceeds of the issue," Knack Packaging stated. The balance proceeds will be earmarked for general corporate purposes and capital expenditure.
According to the red herring prospectus, half of the issue is reserved for qualified institutional buyers, 35% for retail investors, and 15% for non-institutional investors. The one-day anchor book will open on June 30, while the public subscription window will remain open until July 3. As reported by The Hindu BusinessLine, bids can be made at 88 shares and multiples thereof. The company has reserved shares worth ₹2 crore for its employees, who will receive the shares at a discount of ₹16 to the final offer price. The basis of allotment is scheduled for July 6, with refunds initiating on July 7 and credit of shares to demat accounts on the same day. As reported by The Hindu BusinessLine, the company's shares will be listed on both the National Stock Exchange (NSE) and BSE on July 8.
The company holds a 10.1% market share in the domestic market for flexible bulk PLWPP bags in financial year 2024-25, according to the Technopark Report. Knack Packaging provides various packaging solutions including Printed and Laminated Woven Polypropylene (PLWPP) bags and customised PLWPP Pinch Bottom bags. Its clientele includes several domestic and international companies, including Baba Agro Food, Drools Pet Food, Laxmi Protein Products, Mosaic India, KRBL, DCM Shriram, Cristo SA, Sacos y Empaques Internacionales SA de CV, and Repi Soap and Detergent Plc. The company serves brands such as Cargill, Daawat, Drools, and India Gate and is headquartered in Ahmedabad. The company has delivered exceptional financial performance, with revenue from operations growing from ₹6,54.55 crore in fiscal 2024 to ₹8,23.43 crore in fiscal 2026 at a CAGR of 12.16%. EBITDA margins expanded from 15.38% in fiscal 2024 to 20.42% in fiscal 2026, while profit after tax grew from ₹45.97 crore in fiscal 2024 to ₹92.72 crore in fiscal 2026 at a CAGR of 42.01%. Total quantity sold grew at a CAGR of 11.69% from 30,590.10 mt to 38,157.49 mt over the same period.
The issue is managed by Systematix Corporate Services, IDBI Capital Markets & Securities, and Pantomath Capital Advisors as book-running lead managers, with MUFG Intime India serving as the registrar. According to the company's red herring prospectus, Knack Packaging expects to receive benefits including enhanced company visibility, improved brand image among existing and potential customers, and creation of a public market for equity shares in India. The company's portfolio includes Printed and Laminated Woven Polypropylene (PLWPP) bags and PLWPP pinch bottom bags, catering to diverse sectors such as food products and pet foods. As reported by Moneycontrol, Alpesh Tulsibhai Patel, Chairman and Managing Director, highlighted that the company has internal systems to predict fluctuations in key raw material prices linked to crude oil and negotiates with customers to protect its margins. The company has managed to sail through difficult geo-political situations and intends to strengthen its presence in key markets to diversify its customer base.
