Knack Packaging IPO Set to Launch Today: What GMP Reveals Ahead of the Debut

Shares of Knack Packaging are poised to debut on the BSE and NSE on July 8, following a highly successful IPO that garnered a subscription rate of 83.33 times the offered shares. The IPO, valuing Rs 439.5 crore, was particularly well-received among Qualified Institutional Buyers (QIBs), whose demand reached an astonishing 154.34 times their reserved allotment. Non-Institutional Investors (NIIs) displayed robust interest as well, subscribing by 139.81 times, while retail participation was solid at 20.07 times. Ahead of the listing date, the company enjoys a Grey Market Premium (GMP) of approximately Rs 16 per share, indicating a likely listing price of Rs 186, which is roughly 10% above the upper limit of the IPO price band set at Rs 170.

Knack Packaging specializes in integrated packaging solutions, specifically printed and laminated woven polypropylene (PLWPP) bags, which find applications across a wide range of industries, from food grains to construction materials. With an impressive export footprint covering 71 countries and a diverse customer base of over 1,950 clients, the company commands an estimated 10.1% share of India’s flexible bulk PLWPP bags market. Their customer portfolio features prominent Indian firms as well as international clients, including Cargill, underscoring their market credibility and operational scale.

Utilization of proceeds from the IPO is strategically aligned with the company’s growth trajectory, as Knack Packaging intends to allocate approximately Rs 320 crore for establishing a new manufacturing facility at Borisana, Gujarat. The remaining funds will support general corporate purposes. Financially, the company demonstrated substantial growth in FY26, with revenue climbing to Rs 823.4 crore from Rs 736.5 crore the previous year. Additionally, net profit surged to Rs 92.8 crore, up from Rs 73.8 crore in FY25, while EBITDA reached Rs 152 crore, reflecting an enhanced EBITDA margin of 18.5%. This positive financial performance reinforces strong operational efficiency and profitability, projecting confidence for investors as the company enters the public market.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova team.)