Knack Packaging to Surge in Market with ₹440 Crore IPO, Targeting Growth through New Manufacturing Facility

Knack Packaging to Surge in Market with ₹440 Crore IPO, Targeting Growth through New Manufacturing Facility​

The manufacturing sector is set for a major market debut as Knack Packaging, a specialized provider of packaging solutions, prepares to launch its Initial Public Offering (IPO). The company's public subscription window opens on July 1, promising investors a look into the growing potential of indigenous packaging expertise.

Knack Packaging is offering an IPO worth ₹440 crore, with shares priced in the band of ₹161 to ₹170. This issuance will be the first mainboard public issue of the month, attracting attention from both institutional and retail investors across the country.

IPO Structure and Investor Allocation​

The total IPO comprises a fresh issue of shares valued at ₹380 crore, alongside an Offer for Sale (OFS) of 35 lakh shares by promoters, worth ₹59.5 crore. At the upper price band, this offering values the Gujarat-based company at ₹2,080 crore.

The IPO structure is highly segmented to cater to various investor profiles. Half of the total offer size is reserved for Qualified Institutional Buyers (QIBs). Furthermore, 15 percent is allocated to Non-Institutional Investors (NIIs), while the remaining 35 percent is dedicated to retail investors.

A portion of the IPO has been reserved specifically for employees. Knack Packaging has set aside shares worth ₹2 crore for its staff members, offering them a special discount of ₹16 from the final offer price.

Funding Expansion with New Manufacturing Facility​

A significant portion of the fresh issue proceeds is earmarked to fuel massive expansion. The company plans to utilize ₹320 crore from the fresh issue receipts to partially fund the establishment of a new manufacturing facility in Borisana, Gujarat.

This state-of-the-art facility will be dedicated to manufacturing printed and laminated woven polypropylene (PLWPP) bags, as well as PLWPP pinch-bottom bags. The total estimated cost for this project site is ₹364.9 crore.

Knack Packaging confirmed that the company has already deployed ₹12.8 crore towards the setup as of June 23, 2026. Another ₹32 crore will be deployed through internal accruals, leaving approximately ₹320 crore to be covered by the net proceeds of the IPO.

Operational Scope and Financial Performance​

Knack Packaging specializes in supplying crucial packaging components, primarily printed and laminated woven polypropylene (PLWPP) bags and PLWPP pinch-bottom bags. Its industrial clientele spans both domestic and international markets.

Major clients mentioned include Baba Agro Food, Drools Pet Food, Laxmi Protein Products, DCM Shriram, and Repi Soap and Detergent Plc, highlighting the company's robust market presence.

The company has demonstrated a healthy financial trajectory in recent years. Profit for the Financial Year 26 increased by 25.6 percent to reach ₹92.7 crore. Concurrently, revenue grew by 11.8 percent, reaching ₹823.4 crore compared to the previous fiscal year.

IPO Timeline and Management Team​

The anchor book opening is scheduled for June 30. The public subscription phase will run until July 3, providing investors a clear timeline for participation. Knack Packaging anticipates finalizing the share allotment by July 6, with the shares listing on stock exchanges set for July 8.

The successful execution and management of the IPO are being handled by appointed merchant bankers. Systematix Corporate Services, IDBI Capital Markets & Securities, and Pantomath Capital Advisors have been tasked with managing the Knack Packaging IPO process.