Knack Packaging files US$53.96M IPO to expand manufacturing capacity

INDIA – Knack Packaging Ltd, one of India’s largest producers of printed and laminated woven polypropylene (PLWPP) bags, has filed draft papers with the Securities and Exchange Board of India (SEBI) to raise ₹475 crore (US$53.96  million) through an initial public offering (IPO).

The issue will include fresh equity shares as well as an offer-for-sale (OFS) of 70 lakh shares by the promoters.

According to the draft red herring prospectus (DRHP) filed on September 4, the company plans to deploy up to ₹435 crore (US$49.42m) of the fresh issue proceeds toward establishing a new manufacturing facility in Borisana, Gujarat, with the remainder earmarked for general corporate purposes.

The total project cost is pegged at ₹514.9 crore (US$58.50m), of which ₹22.6 crore (US$2.57m) has already been spent on site development.

An additional ₹79.9 crore (US$9.08m) will be met through internal accruals, with the balance funded from IPO proceeds.

The upcoming facility will manufacture printed and laminated woven polypropylene bags, including pinch bottom variants, catering to rising demand from sectors such as food products, agrochemicals, and pet food packaging.

Industry analysts note that India’s woven polypropylene packaging segment has seen steady growth, driven by increased adoption of durable and recyclable materials by FMCG and agri-input players.

Knack Packaging commands an estimated 10.1% share of the flexible bulk PLWPP bag market in FY25, competing with established players such as Time Technoplast, TCPL Packaging, and Mold-Tek Packaging.

The company serves both domestic clients and international customers, highlighting its growing export footprint.

Financially, Knack has delivered robust performance. For the year ended March 2025, net profit surged 60.5% year-on-year to ₹73.8 crore (US$8.38m), while revenue rose 12.5% to ₹736.5 crore (US$83.67m), compared to ₹654.6 crore (US$74.37m) in FY24.

The IPO will not only strengthen its balance sheet but also position the company to meet capacity-driven demand across India’s rapidly expanding packaging sector.

The IPO is being managed by Systematix Corporate Services, IDBI Capital Markets & Securities, and Pantomath Capital Advisors.

Knack’s listing comes amid a wave of capital market activity, with peers such as Shivalaya Construction (₹450 crore IPO) and Glass Wall Systems (₹60 crore IPO) also filing for public issues this month.

With India’s packaging industry projected to touch US$169.73 billion by 2030, according to Mordor Intelligence, Knack Packaging’s expansion could reinforce its role as a key player in sustainable and value-added flexible packaging solutions.

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