Knack Packaging IPO Launches Today: Is It Worth Your Investment?

The Rs 439.5 crore IPO of Knack Packaging is set to open for public subscription from July 1 to July 3, 2023. The IPO features a fresh issue of Rs 380 crore along with an Offer for Sale (OFS) worth Rs 59.5 crore from existing shareholders. The price band has been fixed between Rs 161-170 per share, allowing investors to bid for a minimum of 88 shares. Following the IPO, the company plans for its shares to be listed on both the BSE and NSE, with a tentative listing date earmarked for July 8, 2023.

As of now, Knack Packaging’s shares are trading at a grey market premium (GMP) of approximately 15%, suggesting a robust interest among investors ahead of the IPO. The brokerage Choice Broking has rated the IPO as “Subscribe for Long Term,” citing the company’s strong market presence and integrated manufacturing model. Similarly, Anand Rathi has also recommended a “Subscribe — Long Term” rating, emphasizing the growth potential driven by increased manufacturing capacity and demand for value-added packaging products. The company’s performance in FY26 showed a revenue increase to Rs 823.4 crore, with net profits rising to Rs 92.8 crore, indicating healthy financials.

The impending IPO of Knack Packaging holds significant implications for Indian investors, particularly those interested in the packaging sector. The strong demand reflected in the grey market premium may indicate positive sentiment surrounding the stock’s debut. With the company’s established export presence and its ambitious growth plans, including a new manufacturing facility in Gujarat, investors have reasons to view this IPO favorably. However, potential risks such as economic uncertainties and competitive pressures should also be carefully considered.

Source: The Economic Times

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