The ₹439.50-crore IPO of Knack Packaging opens today at a price band of ₹161-170. Market lot is 88 shares.
The offer has reserved up to 50 per cent to qualified institutional buyers, 15 per cent to non-Institutional investors and not less than 35 per cent to retail investors. The IPO has also a reservation of up to ₹2 crore for employee and those who bid in the employee quota will be offered a discount of ₹16 per share.
The Offer comprises a fresh issue of equity shares aggregating up to ₹380 crore and an Offer for Sale of up to 35 lakh equity Shares by the Selling Shareholders, comprising up to 6.75 lakh shares by Alpesh Tulsibhai Patel, up to 3 lakh shares by Pravinkumar Ambalal Patel, and up to 6.75 lakh hares by Rashminbhai Tulsibhai Patel (promoters), and Up to 2.875 lakh shares by Other Selling Shareholder.
Meanwhile, as pat of IPO, the company has raised ₹131.25 crore from anchor investors from domestic mutual funds, insurance companies, alternative investment funds (AIFs) and foreign institutional investors.
The Ahmedabad-based company, which manufactures printed and laminated woven polypropylene (PLWPP) bags, allotted 77,20,587 equity shares to anchor investors at ₹170 apiece.
Axis Opportunities AIF – Series II emerged as the largest anchor investor, followed by Ashoka India Equity Investment Trust Plc., SBI General Insurance Company Limited, Bandhan Small Cap Fund, Bank of India Mutual Fund (through its Manufacturing & Infrastructure, Mid Cap and Consumption Funds), ITI Mutual Fund (through its Multi Cap and Flexi Cap Funds), Sundaram Alternative Opportunities Fund – ALTAS, Alchemy Long Term Ventures Fund – Series 2, Gagandeep Credit Capital Pvt. Ltd., AIONIOS Alpha Fund I, and JM Financial Mutual Fund – JM Small Cap Fund.
The company proposes to utilise the Net Proceeds towards Funding Capital expenditure towards setting up of new manufacturing facility at Borisana situated at Kadi, Mehsana, Gujarat, estimated to be Rs 435 crore and the balance amount towards general corporate purposes.
Knack Packaging Ltd is one of the leading, integrated, innovation-oriented, export led and sustainable oriented BOPP/PLWPP packaging solutions provider. The company, is one of the early movers in the manufacturing of BOPP/ PLWPP bags, and the first company in India (and Asia) to provide laser cut and easy-open feature integrated into their PLWPP pinch bottom bags (Source: Technopak Report).
The company have been serving top brands under a B2B2C model, including household Indian names such as Baba Agro Food Limited, Drools Pet Food Private Limited, Ebro India Private Limited, Laxmi Protein Products Pvt. Limited, Mosaic India Private Limited, KRBL Limited, Shriram Woven Sacks and DCM Shriram Limited, as well as international brands across 68 countries like Cristo S.A., Sacos y Empaques Internacionales S.A. de C.V., Cargill, Incorporation and Repi Soap and Detergent PLC. These brands use 5kg to 50kg packaging solutions. The key industries which the company serve include grains and pulses – rice, dal, lentils, etc., flour & spices, sugar, salts, fruits & nuts, animal & pet foods, agriculture, seeds, charcoal, detergents powders & granules, fertilizers, chemicals, cement, tile adhesives, building materials, mineral bags etc. (Source: Technopak Report).
Systematix Corporate Services Limited, IDBI Capital Markets & Securities Limited and Pantomath Capital Advisors Private Limited are the Book Running Lead Manager for the Offer.
Brokers’ views
Anand Rathi: On the valuation front, based on FY26 earnings, the company is seeking a P/E of 22.4 x times, and a post-issue market capitalization of approximately ₹2080 crore, making the issue appears to be fairly priced. However, risks remain from raw material price volatility, customer concentration and competitive intensity in the packaging industry. Overall, Knack Packaging is well positioned to benefit from structural growth in flexible packaging demand, supported by integration, scale and export presence. Hence, we assign a Subscribe for Long Term rating for the issue.
Choice Broking: At the upper price band, the issue is valued at a P/E of 22.4x and an EV/Sales multiple of 2.3x, which appears to be fully priced compared to its listed peers. Over the years, the company has demonstrated consistent growth in both revenue and profitability while steadily improving its operating margins through better cost management. As a leading packaging solutions provider with a well-established customer base, the company benefits from strong customer relationships and a favourable market position. To cater to rising order inflows, the company has been expanding its manufacturing capacity. Going forward, it plans to establish its own manufacturing facilities in place of leased units, which is expected to improve operational efficiency, enhance margins, and support long-term growth. Additionally, a significant portion of the company’s revenue is generated from exports, and its joint venture in Mexico is expected to strengthen its international presence, expand its customer base, and enhance brand recognition in overseas markets. Although the issue appears to be fully priced, the company’s consistent financial performance, ongoing capacity expansion, strong export presence, and long-term growth initiatives provide comfort. Accordingly, we recommend ‘Subscribe for Long Term’ rating to the issue.
SBI Securities: Knack Packaging Ltd. operates in industrial packaging with a strong presence in flexible bulk PLWPP bags and a diversified end-user base. The company has an integrated setup with 43,300 MTPA capacity (Mar’26) and has delivered strong growth, with Revenue/EBITDA/PAT CAGR of 12.2%/25.2%/42.8% over FY24–26. Growth ahead will be driven by capacity expansion, Unit‑4 ramp-up, higher share of value-added products, and export traction, while raw material volatility and competition remain key risks. At the upper band of ₹170, the issue is valued at P/E and EV/EBITDA multiple of 22.2x and 12.4x based of FY26 earnings respectively. Considering its market position, marquee client base, well established international presence, and expansion plans in value added products and robust return ratios, we recommend investors to SUBSCRIBE the IPO for long-term investment.
Pioneer InvestCorp: Knack Packaging Ltd. currently is commanding a PE multiple of ~18x on the upper end of the price band at ₹170/share, on an annualized Diluted EPS of ₹9.27/share. The company seems fairly valued.
Marwadi Financial: We assign a “Subscribe” rating to this IPO considering the company’s strong focus on operational efficiency, diversified presence across domestic and international markets and the proposed capacity expansion is expected to support future business growth. Also, it is available at a reasonable valuation as compared to its peers.
Kunvarji Wealth: We recommend subscribing to this IPO with a long-term view only. Knack Packaging manufactures woven packaging solutions, including PP woven sacks, laminated bags, and BOPP bags, catering to industries such as agriculture, chemicals, food, cement, and fertilizers. Rising demand for flexible packaging solutions across sectors supports its long-term growth prospects