The Knack Packaging IPO, which opened for subscription on Wednesday, 1 July, is currently on Day 2 of bidding and will close on Friday, 3 July. Ahead of the issue opening, the packaging solutions provider raised ₹131.25 crore from anchor investors.
The Knack Packaging price band has been fixed at ₹161-170 per equity share with a face value of ₹10. The IPO lot size is 88 equity shares, and applications can be made in multiples of 88 shares thereafter.
The issue has reserved up to 50% of the net offer for Qualified Institutional Buyers (QIBs), at least 15% for Non-Institutional Investors (NIIs), and at least 35% for retail investors.
Following the closure of the issue, the basis of allotment is expected to be finalised on Monday, 6 July. Refunds are likely to be initiated and shares credited to successful bidders’ demat accounts on Tuesday, 7 July, while the Knack Packaging share price is tentatively scheduled to list on the BSE and NSE on Wednesday, 8 July.
Knack Packaging manufactures printed and laminated woven polypropylene (PLWPP) bags and PLWPP pinch-bottom bags, serving industries including food products, animal nutrition, and pet food.
Knack Packaging IPO GMP today
Knack Packaging IPO today is +26. 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 ₹196 apiece, which is 15.29% higher than the IPO price of ₹170.
Considering grey market activity over the previous nine sessions, the IPO’s GMP is trending upward today, indicating a solid listing. Experts report that the lowest GMP is ₹11.50, while the highest is ₹26.
Knack Packaging IPO review
Nirmal Bang Institutional Equities has assigned a ‘Subscribe’ rating to the Knack Packaging IPO, citing the company’s strong market position, integrated business model and reasonable valuation. The brokerage noted that Knack Packaging commands around 10.1% market share in India’s PLWPP bulk bags market and operates a fully integrated value chain—from polypropylene granules to finished bags—which has helped it deliver an EBITDA margin of around 18%, higher than listed peers such as TCPL Packaging and Time Technoplast.
The brokerage also highlighted the company’s diversified customer base, with 94% of FY26 revenue generated from existing customers and no single customer contributing more than 25% of revenue. It believes the proposed capacity expansion, which will increase production capacity from around 43,300 MTPA to 76,000 MTPA by October 2027, will support future growth. At 22.4x FY26 earnings and around 15x EV/, Nirmal Bang believes the IPO is reasonably valued relative to peers.
Swastika Investmart has recommended the issue with a ‘Subscribe’ rating from a short-term perspective, citing the company’s healthy financial growth, improving profitability, strong return ratios and robust operating margins. The brokerage said the IPO is priced at a pre-issue P/E of around 18.3x FY26 earnings, which it considers reasonable compared with peers.
It also highlighted Knack Packaging’s competitive advantages, including its fully integrated manufacturing operations, a library of over 73,000 customised printing cylinders, and a portfolio of more than 13,000 SKUs, which create a strong competitive moat. However, Swastika cautioned that customer concentration, the absence of long-term supplier contracts and dependence on a new manufacturing facility for future growth remain key execution risks. It advised long-term investors to reassess the company after its post-listing performance.
Anand Rathi Research has assigned a ‘Subscribe for Long Term’ rating to the IPO. The brokerage believes the issue is fairly priced at a P/E of 22.4x FY26 earnings, with a post-issue market capitalisation of approximately ₹2,080 crore.
While acknowledging risks such as raw material price volatility, customer concentration, and intense competition in the packaging industry, Anand Rathi believes Knack Packaging is well-positioned to benefit from structural growth in the flexible packaging segment, supported by its backward integration, manufacturing scale, and export presence.
Knack Packaging IPO subscription status
Knack Packaging IPO subscription status was 2.60x on day 1, so far. The retail portion is subscribed 1.31x, and NII portion has been booked 4.89x, QIBs portion received 3.15x bids.
The company has received bids for 4,92,46,296 shares against 1,89,64,018 shares on offer at 17:00 IST, according to BSE data.
Knack Packaging IPO details
The Knack Packaging IPO comprises a fresh issue of equity shares worth up to ₹380 crore and an offer-for-sale () of up to 35 lakh equity shares, aggregating to ₹59.5 crore, by existing shareholders.
The company plans to utilise the net proceeds from the fresh issue primarily to set up a new manufacturing facility at Borisana, Kadi, in Gujarat’s Mehsana district, with the remaining funds earmarked for general corporate purposes.
Systematix Corporate Services Ltd., IDBI Capital Markets & Securities Ltd., and Pantomath Capital Advisors Pvt. Ltd. are acting as the book-running lead managers to the issue.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.