Knack Packaging IPO opens today. Should you subscribe?

The Rs 439.5 crore IPO of Knack Packaging will open for public subscription on July 1 and close on July 3. Ahead of the issue, the company's shares were commanding a grey market premium (GMP) of around 15%, indicating healthy investor interest.

The IPO comprises a fresh issue worth Rs 380 crore and an offer for sale (OFS) of up to Rs 59.5 crore by existing shareholders. The price band has been fixed at Rs 161-170 per share, with investors able to bid for a minimum of 88 shares. The stock is proposed to be listed on the BSE and NSE, with a tentative listing date of July 8.

About the company

Knack Packaging is an integrated packaging solutions manufacturer engaged in producing Printed and Laminated Woven Polypropylene (PLWPP) bags, including pinch-bottom bags used across industries such as food grains, flour, sugar, pet food, fertilizers, chemicals, detergents, cement and construction materials.


The company exports to 71 countries and serves over 1,950 customers globally. It has an estimated 10.1% market share in India's flexible bulk PLWPP bags segment and operates an integrated manufacturing model covering the entire production chain from polypropylene processing to printing and bag conversion.

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Its customer base includes companies such as KRBL, Drools, DCM Shriram, Baba Agro Foods, while internationally it serves clients including Cargill and other global brands.

Financial performance

For FY26, the company reported revenue from operations of Rs 823.4 crore, up from Rs 736.5 crore in the previous year.

Net profit increased to Rs 92.8 crore from Rs 73.8 crore in FY25, while EBITDA improved to Rs 152 crore, with EBITDA margins expanding to 18.5%.

Utilisation of proceeds

The company plans to use the fresh issue proceeds primarily to fund the construction of a new manufacturing facility at Borisana in Gujarat, with around Rs 320 crore earmarked for capital expenditure. The remaining proceeds will be used for general corporate purposes.

What brokerages say

Choice Broking has assigned a "Subscribe for Long Term" rating to the IPO.

The brokerage believes Knack Packaging has built a strong competitive position through its integrated operations, export presence and consistent financial performance. It expects the company's ongoing capacity expansion, shift towards owned manufacturing facilities and international growth initiatives, including its Mexico joint venture, to support long-term earnings growth.

However, Choice also highlighted risks from global economic slowdowns, customer concentration, foreign currency fluctuations and competitive pressures.

Anand Rathi has also recommended "Subscribe -- Long Term" on the issue.

The brokerage believes the company is well positioned in the organised packaging industry with an integrated manufacturing model, strong export presence and growing demand for value-added packaging products. It also noted that increasing manufacturing capacity and improving operational efficiencies could support future growth.

At the upper end of the price band, the IPO is valued at around 22.4 times FY26 earnings, which both brokerages consider broadly fair considering the company's growth profile and export-led business model.

With a 15% grey market premium, the issue is expected to attract strong investor attention when bidding opens on Tuesday.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)