Knack Packaging IPO Day 2: Strong Demand Boosts GMP to 16% Listing Gain—Is Subscription Worth It?
The Knack Packaging IPO, which aims to raise Rs 439.5 crore, entered its second day of bidding with encouraging interest from investors. The issue has seen a robust response, being subscribed 2.6 times on Day 1 against the 1.89 crore shares available for allocation. Of particular note is the retail investor segment, which was subscribed 1.31 times, indicating a steady influx of participation from individual investors. The public offering, which consists of a fresh issue of Rs 380 crore along with an offer for sale (OFS) worth Rs 59.5 crore, has a fixed price band of Rs 161-170 per share, requiring a minimum application of 88 shares. The shares are set to be listed on both the BSE and NSE with a tentative listing date of July 8.
Grey market sentiment for the Knack Packaging IPO remains positive, with shares commanding a premium of about 16% over the upper price band, translating to an anticipated listing price of Rs 196 per share if current trends sustain. This projection indicates a potentially healthy listing gain for investors. The significant demand seen in the grey market aligns with the strong subscription numbers, particularly from non-institutional investors who subscribed 4.89 times. Such performance in both the primary and secondary markets bodes well for investor confidence heading into the official listing.
For Indian investors, the Knack Packaging IPO presents a compelling investment opportunity, especially following positive endorsements from brokerages like Choice Broking and Anand Rathi, both recommending a “Subscribe for Long Term” strategy. Investors can benefit from the company’s strong market position, integrated operations, and promising financial growth, which was highlighted by its increasing revenues and profits for FY26. Nonetheless, investors should remain cognizant of the inherent risks, including competitive pressures and foreign currency fluctuations, which could impact future performance. Overall, the IPO signifies an exciting prospect within the Indian market, reinforced by strategic operational enhancements and a focus on international growth.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova IPO team.)