Knack Packaging’s US$52.6M IPO draws anchor interest of US$15.7M for July 1 public opening

INDIA – Knack Packaging has opened its ₹439.5 crore (US$52.6 million) IPO for public subscription from July 1 to July 3, 2026, with a price band of ₹161-170 (US$1.93-2.04) per share, raising ₹131.25 crore (US$15.7 million) from anchor investors ahead of the launch.

The Ahmedabad-based manufacturer of printed and laminated woven polypropylene bags secured anchor backing from domestic mutual funds, insurance companies and foreign institutional investors at ₹170 (US$2.04) per share, the upper end of the band. 

Anchor participants included Axis Opportunities AIF – Series II, SBI General Insurance Company, Bandhan Small Cap Fund, ITI Mutual Fund and JM Financial Mutual Fund, with Axis Opportunities contributing ₹40 crore (US$4.8 million). 

The IPO opened on July 1, 2026 and will close on July 3, 2026, with allotment expected on July 6 and listing on BSE and NSE scheduled for July 8.

IPO Structure and Key Financial Metrics

The public issue comprises a fresh issue of ₹380 crore (US$45.5 million) and an offer for sale of up to 35 lakh shares worth ₹59.5 crore (US$7.1 million), valuing the company at approximately ₹2,080 crore (US$249 million) at the upper price band. 

Retail investors can bid for a minimum of 88 shares, requiring ₹14,960 (US$179.20) at the upper band. 

The company operates with an estimated 10.1 per cent market share in India’s flexible bulk PLWPP bag segment, serving over 1,950 customers across 68 countries. 

Its client portfolio includes Drools Pet Food, KRBL, DCM Shriram, and international customers such as Cargill.

Expansion Plans and Financial Performance

Net proceeds from the fresh issue will fund a new manufacturing facility at Borisana in Gujarat’s Mehsana district, with total estimated project cost of ₹364.9 crore (US$43.7 million). 

The company reported FY26 revenue of ₹843.77 crore (US$101.1 million), up 13 per cent year-on-year, with profit after tax of ₹92.72 crore (US$11.1 million), reflecting 26 per cent growth. 

As a two-star export house, exports account for 56.3 per cent of revenue, with key markets including the US, Mexico and South Africa. 

The company has established a South Africa subsidiary and a Mexico joint venture for localised distribution. 

With over 73,000 printing cylinders for 13,379 SKUs, the company has built deep customer switching costs, reflected in FY26 customer retention of 88.3 per cent. 

Return ratios remain strong at 46.7 per cent RoCE and 35.8 per cent RoE, substantially above packaging industry peers.

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