Knack Packaging IPO opens today: Should you subscribe? Check price band, latest GMP & more

The initial public offering (IPO) of Knack Packaging opens for subscription on Wednesday, July 01. The packaging solutions player is offering its shares in the range of Rs 161-170 apeice and investors can apply for minimum 88 equity shares and its multiples thereafter. The issue will close for subscription Friday, July 03.

The Rs 439 crore IPO of Knack Packaging includes a fresh share sale of up to Rs 380 crore and an offer for sale of up to 35 lakh equity shares worth Rs 60 crore. The net proceeds from the issue shall be utilized towards funding of capital expenditure towards setting up of new manufacturing facility at Borisana situated at Kadi, Mehsana, Gujarat. and general corporate purposes.

Incorporated in 2013, Ahmedabad-based Knack Packaging is an integrated packaging solutions provider focusing on innovation, exports and sustainability. It manufactures Printed and Laminated Woven Polypropylene (PLWPP) bags, including pinch bottom, gusset, block bottom, and retail shopping bags. 

Its high-strength solutions are used across industries such as food, pet food, agriculture, fertilizers, building materials, detergents, cement, chemicals, minerals, and more. The products enhance brand visibility, reduce counterfeiting risks, and improve operational performance.  It held around 10.1 per cent share of the Indian flexible bulk PLWPP bag market as of FY25.

Ahead of its IPO, Knack Packaging raised Rs 131.25 crore from anchor investors as it allocated 77,20,587 equity share for Rs 170 apiece. Its anchor book included names like  Ashoka India Equity Investment Trust, SBI General Insurance, Bandhan Small Cap Fund, ITI Mutual Fund, Alchemy Long-term Fund, JM Financial Mutual Fund and others.

Knack Packaging reported a net profit of Rs 92.72 crore, with a revenue of Rs 843.77 crore for the financial year on March 31, 2025. It clocked a net profit of Rs 73.91 crore with a revenue of Rs 747.38 crore for the financial year 2024-25. At the current valuations, it commands a market capitalization of more than Rs 2,050 crore.

Knack Packaging has reserved 50 per cent of the net offer for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will have 15 per cent of allocation. Retail investors will get 35 per cent of the reservation in the issue. Last heard, it was commanding a grey market premium (GMP) of Rs 25-26 apeice, suggesting a listing pop of 15 per cent for investors.

Systematix Corporate Services, IDBI Capital Markets & Securities and Pantomath Capital Advisors are the book running lead managers for Knack Packaging IPO and MUFG Intime India is the registrar of the issue. Shares of the company shall be listed on both BSE and NSE on July 08, Wednesday. Here's what a host of brokerage firms say about the IPO of Knack Packaging:

Anand Rathi Research Rating: Subscribe for long-term Knack Packaging plans to establish its own manufacturing facilities in place of leased units, which is expected to improve operational efficiency, enhance margins, and support long-term growth. It is seeking a P/E of 22.4 times, and a post-issue market capitalization of nearly Rs 2,080 crore, making the issue appears to be fairly priced, said Anand Rathi Research.

"However, risks remain from raw material price volatility, customer concentration and competitive intensity in the packaging industry.  Overall, Knack Packaging is well positioned to benefit from structural growth in flexible packaging demand, supported by integration, scale and export presence. Hence, we assign a 'subscribe for long term' rating for the issue," it added.

Choice Broking Rating: Subscribe for long-term The issue appeared to be fully priced compared to its listed peers. Knack Packaging has demonstrated consistent growth in both revenue and profitability while steadily improving its operating margins through better cost management. As a leading packaging solutions provider with a well-established customer base, it benefits from strong customer relationships and a favorable market position, said Choice Broking.

It plans to establish its own manufacturing facilities in place of leased units, which is expected to improve operational efficiency, enhance margins, and support long-term growth. A significant portion of the company's revenue is generated from exports, and its joint venture in Mexico is expected to strengthen its international presence, expand its customer base, and enhance brand recognition in overseas markets, it added with ' subscribe for long-term' rating. 

SBI Securities Rating: Subscribe Knack Packaging operates in industrial packaging with a strong presence in flexible bulk PLWPP bags and a diversified end-user base. It has an integrated setup with 43,300 MTPA capacity and has delivered strong growth, with revenue, EBITDA and PAT CAGR of 12.2 per cent, 25.2 per cent and 42.8 per cent over FY24–26. The issue is valued at P/E and EV/EBITDA multiple of 22.2 times and 12.4 times, respectively, said SBI Securities.

"Growth ahead will be driven by capacity expansion, Unit‑4 ramp-up, higher share of value-added products, and export traction, while raw material volatility and competition remain key risks. Considering its market position, marquee client base, well established international presence, and expansion plans in value added products and robust return ratios," it added with a 'subscribe' rating.

Swastika Investmart Rating: Subscribe Healthy growth in recent years with improving profitability, high ROE/ROCE, and strong margins. Pre-IPO valuation at 18.3 times P/E, seen as reasonable to its peers. With fully in-house vertical integration, a massive library of 73,000 custom printing cylinders, and over 13,000 SKUs, it maintains a strong competitive moat against smaller players, said Swastika Investmart.

"Customer concentration risk, no long-term supplier contracts, and heavy reliance on one new facility for future growth add execution uncertainty. Reasonable pricing with strong margins make it a good short-term bet; long-term investors should reassess post-listing performance before holding," it added.

BP Equities Rating: Subscribe for long-term Backed by its integrated manufacturing capabilities, technological differentiation and strong financial performance, the company is well positioned to deliver sustainable revenue growth, margin expansion and long-term value creation. Knack Packaging is valued at a P/E multiple of 18.3 times based on FY26 earnings, said BP Equities.

"Given Knack Packaging's historical growth track record, expanding margins, scalable business model and industry growth potential, we believe the valuation is justified. Thus, we recommend a 'subscribe' rating for this issue with a medium to long-term investment horizon," it added.

Marwadi Financial Services Rating: Subscribe "We assign a 'subscribe' rating to this IPO considering the company’s strong focus on operational efficiency, diversified presence across domestic and international markets and the proposed capacity expansion is expected to support future business growth," said Marwadi Financial Services. "It is available at a reasonable valuation as compared to its peers."

SMIFS Rating: Subscribe With increasing export penetration, continuous product innovation and expansion into high-growth end-use industries, It is expected to significantly strengthen its manufacturing capabilities and growth trajectory These growth initiatives to drive a meaningful increase in revenues over the next three to four years, supported by improving utilization, said SMIFS.

"Despite delivering the highest ROE and ROCE among listed peers, the issue is attractively valued relative to comparable companies. Considering its market leadership, strong competitive positioning, robust growth visibility, healthy return profile and attractive valuation, we recommend subscribing to the issue from a medium- to long-term investment perspective," it added.

Sushil Finance Rating: Subscribe Knack Packaging is one of the most compelling manufacturing IPOs in the current cycle. It combines best-in-class margins, genuine export leadership, a proprietary product moat, and a clean IPO structure a combination that is genuinely uncommon among small-cap manufacturing IPOs. Knack Packaging is a relatively promising IPO in this IPO cycle, said Sushil Finance.

"Considering, they have better margins of 20.42 per cent Ebitda compared to peers combined with global exports, genuine product moat, and a clear capacity expansion story. Additionally they have a good ROIC of 33.41 per cent. Despite the real risks but manageable. This is a subscribe with conviction at the right price," it added.

Lakshmishree Investments Rating: Subscribe Knack Packaging operates in industrial packaging with a strong presence in flexible bulk PLWPP bags and a diversified end-user base. It has an integrated setup with 43,300 MTPA capacity and has delivered strong growth, with revenue, EBITDA and PAT CAGR of 12.2 per cent, 25.2 per cent  and 42.8 per cent over FY24 26, said Lakshmishree Investments.

"Growth ahead will be driven by capacity expansion, Unit 4 ramp-up, higher share of value-added products, and export traction, while raw material volatility and competition remain key risks. It is valued at P/E and EV/EBITDA multiple of 22.2 times and 12.4 times based of FY26 earnings respectively. Considering its market position, marquee client base," it added.

Ventura Securities Rating: Subscribe Knack Packaging is a Gujarat-based manufacturer of flexible packaging products, including PP/HDPE woven sacks, laminated bags, BOPP bags and leno bags, serving sectors such as cement, chemicals, fertilizers, agriculture and food grains. Backed by rising demand for organized packaging solutions, it benefits from a diversified customer base and manufacturing-led operations, said Ventura.

"In FY26, revenue rose to Rs 823.4 crore, while PAT increased to Rs 92.7 crore, reflecting healthy margins and operational efficiency. The IPO comprises a fresh issue and OFS, with proceeds primarily earmarked for a new manufacturing facility in Gujarat to support future capacity expansion and growth," it added.

Beacon Capital Advisors (Equivision) Rating: Subscribe for long-term Knack Packaging holds a leadership position in the domestic PLWPP bags market, being the largest manufacturer of Printed and Laminated Woven Polypropylene (PLWPP) and PLWPP Pinch Bottom bags in India by FY25 revenue, with a 10.1 per cent market share in the flexible bulk PLWPP bags segment, said Beacon Capital Advisors.

"However, the company faces concentration risks, with the top 10 suppliers accounting for 86.21 per cent of raw material purchases, a significant share of revenue generated from a limited customer base the US market (23.66 per cent in FY26), while all manufacturing facilities are located in Gujarat, increasing exposure to supply chain and regional disruptions," it added.