Knack Packaging IPO Opens 1 July; Company Looks To Raise Nearly ₹440 Crore

Knack Packaging, a Gujarat-based manufacturer of woven polypropylene packaging products, will open its initial public offering (IPO) for subscription on 1 July. The issue closes on 3 July, while anchor investors are expected to bid a day earlier on 30 June.

The company has fixed the price band at ₹161-170 per share.

At the upper end of the band, the public issue is expected to mobilise about ₹439.5 crore and value the company at roughly ₹2,080 crore.

Offer Structure Revised From Original Plan

The IPO consists of two parts.

A fresh issue of shares will contribute ₹380 crore, while promoters will sell 35 lakh equity shares through an offer-for-sale (OFS). The issue size is smaller than what the company had initially proposed.

When Knack Packaging submitted its draft papers to the Securities and Exchange Board of India (SEBI) in September 2025, it had planned to raise ₹475 crore through fresh shares and offer 70 lakh shares under the OFS route. The regulator cleared the proposal in December 2025, after which the structure was trimmed.

New Gujarat Plant To Be A Key Focus Area

Most of the fresh capital is earmarked for expansion.

The company plans to deploy around ₹320 crore towards setting up a manufacturing facility at Borisana in Gujarat. The proposed unit will produce printed and laminated woven polypropylene bags along with pinch-bottom variants used across industries.

According to the company, the project carries an estimated cost of ₹364.9 crore.

By 23 June 2026, nearly ₹12.8 crore had already been invested in the facility. Another ₹32 crore is expected to come from internal resources, while the remaining requirement is proposed to be met through IPO proceeds.

Retail Quota, Employee Discount And Listing Timeline

Investors will be able to apply for a minimum lot of 88 shares. Applications can thereafter be made in multiples of 88 shares.

The allocation has been divided across investor categories, with half the issue reserved for qualified institutional buyers. Retail investors have been allocated 35% of the offer, while non-institutional investors will have access to 15%.

The company has also carved out an employee reservation portion worth ₹2 crore. Eligible employees will receive a discount of ₹16 per share.

If the schedule remains unchanged, allotment is likely to be completed by 6 July, with listing expected on 8 July.

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Profit Crosses ₹90 Crore In FY26

Knack Packaging reported higher earnings during FY26.

Net profit rose to ₹92.7 crore, resulting in an increase of 25.6% compared to the last financial year. Revenue also grew 11.8% on a year-on-year basis to ₹823.4 crore.

The upcoming public issue will be closely watched as investors assess the company's expansion plans and its ability to translate new manufacturing capacity into future growth.

Sources:

Moneycontrol

Livemint