The Initial Public Offering (IPO) of Ahmedabad-based Knack Packaging experienced significant investor demand, achieving an overall subscription of 18.3 times by 12:05 PM on its third and final day of bidding, Friday, July 3, 2026. The strong interest, particularly from High Net-worth Individuals (HNIs) and institutional investors, pushed the subscription rate considerably higher than the 8 times recorded by the close of day two.
Investors bid for 34,68,37,656 equity shares against the 1,89,64,018 shares offered for subscription. The Qualified Institutional Bidders (QIBs) portion was booked approximately 10.69 times, while the allocation for retail investors saw an overwhelming subscription of 50.99 times. Non-institutional investors (NIIs) subscribed 8.75 times, and the employee quota was booked 5.8 times by the same time.
IPO Details and Company Overview
Knack Packaging offered its shares in a price band of Rs 161-170 apiece. The IPO aimed to raise Rs 439 crore, comprising a fresh issue of Rs 380 crore and an Offer-for-Sale (OFS) of up to 35,00,000 equity shares valued at Rs 60 crore. Investors could apply for a minimum of 88 shares and in multiples thereof. Prior to the public offering, the company successfully raised Rs 131.25 crore from anchor investors by allocating 77,20,587 equity shares at Rs 170 each.
Established in 2013, Knack Packaging is an integrated packaging solutions provider based in Ahmedabad, India. The company specializes in manufacturing Printed and Laminated Woven Polypropylene (PLWPP) bags, including various types like pinch bottom, gusset, and block bottom bags. It holds a significant 10.1 percent market share in India's PLWPP bulk bags segment and manages its entire value chain, from PP granule production to finished bags.
Financial Performance and Future Outlook
For the financial year ending March 31, 2025, Knack Packaging reported a net profit of Rs 73.91 crore on a revenue of Rs 747.38 crore. The company's EBITDA margins stood at 18 percent, notably higher than its listed peers, a factor attributed to its integrated value chain control. Analysts from Nirmal Bang Research noted that 94 percent of the company's FY26 revenue came from existing customers, with no single customer accounting for more than 25 percent of revenue, serving diverse end-use sectors.
Knack Packaging plans to utilize the IPO proceeds to fund a substantial capacity expansion, nearly doubling its manufacturing capacity from 43,300 MTPA to 76,000 MTPA by October 2027. The management aims to capitalize on the growing global demand for PLWPP bags by entering new end-user segments such as branded fertilizers, seeds, specialty chemicals, and building materials. The company also intends to benefit from the 'China+1' sourcing trend by expanding exports across Europe, Australia, the Gulf, and Africa, supported by its recently operational joint venture, Sayem Knack, in Latin America and the US. Furthermore, Knack Packaging is investing in automation, AI, and machine learning to enhance production efficiency and supply chain management.
Grey Market Premium and Listing
Market observers noted that Knack Packaging was commanding a Grey Market Premium (GMP) of Rs 32-34, suggesting a potential listing gain of approximately 20 percent for investors. The company's shares are scheduled to be listed on both the BSE and NSE on Wednesday, July 8, 2026. Systematix Corporate Services, IDBI Capital Markets & Securities, and Pantomath Capital Advisors are the book-running lead managers for the issue, with MUFG Intime India acting as the registrar.