Knack Packaging’s 9.41% debut premium, 83x subscription surpass targets with US$53M IPO

INDIA – Knack Packaging’s stock ended its first trading session on the BSE at ₹182.70 (US$2.19) after a 7.5% premium debut, as the packaging manufacturer’s IPO raised US$53 million for its new Gujarat production facility amid record 83.33 times subscription and QIB demand of 154 times.

The Ahmedabad-based integrated packaging solutions provider, which manufactures printed and laminated woven polypropylene (PLWPP) bags, listed at ₹186 (US$2.23) on the BSE against the issue price of ₹170 (US$2.04), marking a 9.41% opening premium. 

The ₹439.5 crore (US$52.7 million) IPO comprised a fresh issue of ₹380 crore (US$45.5 million) and an offer-for-sale of ₹59.5 crore (US$7.13 million), with the fresh issue proceeds funding a new manufacturing facility at Borisana in Gujarat’s Mehsana district.

Record Subscription and Institutional Demand Surpass All Expectations

The IPO, open for subscription from July 1 to July 3, was subscribed an astounding 83.33 times, far exceeding the typical 3-5 times subscription seen in most Indian IPOs. 

Qualified Institutional Buyers led the demand at 154.34 times, followed by Non-Institutional Investors at 139.81 times and the retail quota at 20.07 times, demonstrating strong confidence across all investor categories. 

The stock touched an intraday high of ₹192 (US$2.30) and a low of ₹183.15 (US$2.19) before closing at ₹182.70 (US$2.19), giving the company a market valuation of approximately ₹2,235 crore (US$267.8 million). 

The anchor investor portion was fully subscribed on the first day, with 14 institutional investors participating.

Expansion Plans and Anchor Investor Participation

The company raised ₹131.25 crore (US$15.7 million) from 14 anchor investors on June 30, 2026, allotting 77.20 lakh shares at ₹170 (US$2.04) per share. 

Over 17.80 lakh shares were traded on the BSE during the day. Knack Packaging reported a consolidated net profit of ₹92.72 crore (US$11.1 million) and sales of ₹823.43 crore (US$98.6 million) for the twelve months ended March 31, 2026. 

The Borisana facility, with an installed capacity of 43,300 MTPA, will expand the company’s production to serve its over 1,950 customers across 71 countries. 

The company, which derives 56.3% of its revenue from exports, has established a significant presence across food, agriculture, pet feed, fertiliser, and industrial sectors.

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