Knack Packaging’s IPO targets US$52.7M valuation with Gujarat plant expansion

INDIA – Knack Packaging has announced its initial public offering with a price band of Rs 161 (US$1.93) to Rs 170 (US$2.04) per share, aiming to raise ₹439.5 crore (US$52.7 million) through a fresh issue of ₹380 crore (US$45.5 million) and an offer for sale, with the proceeds funding a new manufacturing facility in Mehsana, Gujarat.

The public issue, opening on July 1 and closing on July 3, 2026, comprises 22.35 million fresh equity shares and an offer for sale of 3.5 million shares by promoter group shareholders. Investors can bid for a minimum of 88 equity shares, requiring a minimum investment of ₹14,960 (US$179.20) for retail participants. 

The anchor book opens on June 30, with share allotment expected on July 6 and listing on BSE and NSE scheduled for July 8.

How US$38.3M capex funds new flexible packaging plant for 43,300T capacity

The company intends to utilize ₹320 crore (US$38.3 million) from the fresh issue proceeds to partially fund the establishment of a new manufacturing facility at Borisana, Kadi in Mehsana, Gujarat. 

The total estimated cost of the project is ₹364.9 crore (US$43.7 million), of which the company has already deployed ₹12.8 crore (US$1.53 million) as of June 2026, with an additional ₹32 crore (US$3.83 million) funded through internal accruals. Knack Packaging currently manufactures bulk flexible packaging solutions with an installed capacity of 43,300 metric tonnes per annum. 

The company exports to 71 countries and has a pan-India presence. Revenue from operations grew from ₹654.55 crore (US$78.4 million) in fiscal 2024 to ₹823.43 crore (US$98.6 million) in fiscal 2026, representing a CAGR of 12.16 percent, while profit after tax grew from ₹45.97 crore (US$5.51 million) to ₹92.72 crore (US$11.1 million) at a CAGR of 42.01 percent.

What 25-50% BOPP Market Growth and 10.1% Indian Market Share Mean for Packaging Exports

Knack Packaging holds approximately 10.1 percent of the Indian market share for flexible bulk PLWPP bags as of fiscal 2025. 

The BOPP bag industry is growing at approximately 20 to 25 percent, fueled by rising demand for durable, customizable and sustainable packaging solutions across food, agriculture and industrial goods sectors. 

The company serves prominent Indian brands including Drools Pet Food, KRBL, DCM Shriram and Mosaic India, while its international clientele spans 71 countries with names such as Cargill, Cristo S.A. and Repi Soap and Detergent PLC.

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