Knack Packaging IPO Reaches 3.84X Subscription on Day Two as Demand Surges for Packaging Solutions Provider

Knack Packaging IPO Reaches 3.84X Subscription on Day Two as Demand Surges for Packaging Solutions Provider​

Knack Packaging, a key player in the packaging solutions industry, is witnessing a strong investor response in its initial public offering (IPO) on the second day of share sale. The company has seen robust participation across all investment categories, driving up demand for its shares. As of Thursday, the IPO stands at a subscription rate of 3.84 times.

Subscription Details and Investor Interest​

The initial issue is designed to raise funds while providing investors with an opportunity to acquire stakes in the growing packaging sector. Against a total offering of 1.89-crore shares, the IPO has received bids for 7.39-crore shares as reported by data available on the NSE till 12 p.m.

Investor enthusiasm is evident across specific buyer categories. The non-institutional investors' portion of the issue achieved an impressive 8.52 times subscription. Qualified Institutional Buyers (QIBs) contributed significantly, with their quota receiving a 3.17 times subscription rate. Meanwhile, the retail investor segment also showed strong interest, securing 2.35 times subscription.

IPO Details and Financial Structure​

The total size of the offering stands at Rs 439.5-crore. This offering includes funds raised through the fresh issue, complementing the proceeds already secured from anchor investors. Knack Packaging had previously raised Rs 131.25 crore from these anchor investors.

The IPO is priced with a designated band ranging between Rs 161 and Rs 170 per share. The company headquarters are in Ahmedabad, making it an integrated, innovation-driven, and export-oriented packaging solutions provider. Knack manufactures customized Printed and Laminated Woven Polypropylene (PLWPP) bags and PLWPP pinch bottom bags.

Future Plans and Listing Details​

The proceeds generated from the fresh issue will be strategically allocated to setting up a new manufacturing facility. This new plant is slated for Borisana, Kadi in the Mehsana district of Gujarat. The remaining funds raised through the IPO are earmarked for general corporate purposes.

Knack Packaging currently caters to diverse sectors, including those specializing in pet foods and food products. These solutions provider will be listed on both the BSE and NSE markets on July 8th. The entire subscription period for the IPO is scheduled to conclude on July 3rd.