Knack Packaging IPO subscribed over 18x on day 3 as GMP rises, issue concludes today

The initial public offering (IPO) of Knack Packaging continued to see a strong bidding from the investors on the third and final day of the bidding process, thanks to HNI interest with institutions joining the bidding. The issue was overall nearly 3 times on the first day of the bidding and ended day two with 8 times subscription.

Knack Packaging is selling its shares in the price band of Rs 161-170 apiece. Investors can apply for a minimum of 88 shares and its multiples thereafter. It is looking to raise Rs 439 crore via IPO, which includes a fresh share sale of Rs 380 crore and an offer-for-sale (OFS) of up to 35,00,000 equity shares worth Rs 60 crore.

According to the data, the investors made bids for 34,68,37,656 equity shares, or 18.3 times, compared to the 1,89,64,018 equity shares offered for the subscription by 12.05 pm on Friday, July 03, 2026. The bidding for the issue, which began on Wednesday, July 01, shall conclude today.

The portion reserved for qualified institutional bidders (QIBs) was booked nearly 10.69 times. The allocation for retail investors was subscribed 50.99 times, while the portion reserved for non-institutional investors (NIIs) saw a subscription of 8.75 times. Employees quota was booked 5.8 times per cent as of the same time.

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. 

Knack Packaging holds 10.1 per cent market share in India's PLWPP bulk bags market and controls the entire value chain from PP granule to finished bag, which explains why its EBITDA margins at 18 per cent are higher than listed peers. In FY26, 94 per cent of revenue came from existing customers and no single customer exceeds 25 per cent of revenue, and it serves diverse end-use sectors, said Nirmal Bang Research.

"IPO proceeds will fund capacity expansion that nearly doubles capacity — from 43,300 MTPA to 76,000 MTPA by October 2027. Valuation at 22.4 times P/E and 15 times  EV/EBITDA on FY2026 earnings appears reasonable and is cheaper vs listed peers despite
Knack's superior margins and returns and thus we recommend ‘subscribe’ to the IPO," it adds.

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. 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.

Knack Packaging continues to focus on expanding its manufacturing capacity. Management plans to leverage the growing global demand for Printed and Laminated Woven Polypropylene (PLWPP) bags by entering new end-user segments such as branded fertilizers, seeds, specialty chemicals, building materials and shopping bags, while replacing conventional multiwall paper bags in several applications, said Arihant Capital.

It also intends to benefit from the global 'China+1' sourcing trend by expanding exports across Europe, Australia, the Gulf and Africa, supported by its recently operational joint venture, Sayem Knack, in Latin America and the US. Alongside geographic expansion, Knack Packaging is investing in automation, AI, machine learning to improve production efficiency, quality control and supply chain management," it added with a 'neutral' rating.

Fractal Analytics has reserved 50 per cent for the issue for the qualified institutional bidders (QIBs), while 15 per cent shares are reserved for non-institutional investors (NIIs). Retail investors have 35 per cent of shares allocated towards them. At the current valuations, Knack Packaging commands a market capitalization close to Rs 2,080 crore.

Last heard, Knack Packaging was commanding a grey market premium (GMP) of Rs 32-34, suggesting a listing pop of 20 per cent for investors. Systematix Corporate Services, IDBI Capital Markets & Securities and Pantomath Capital Advisors are the book running lead managers for and MUFG Intime India is the registrar of the issue. Its shares shall be listed on both BSE and NSE July 08, Wednesday.