The initial public offering (IPO) of Knack Packaging Limited opens for subscription today, July 1, 2026, offering investors an opportunity to participate in the company's growth story. The IPO will remain open until July 5, 2026, with a price band set at ₹115 to ₹120 per equity share of face value ₹10.
IPO Details and Structure
Knack Packaging's IPO comprises a fresh issue of up to 1.2 crore shares, aggregating to approximately ₹144 crore at the upper price band. The company plans to utilize the net proceeds for funding capital expenditure requirements for expansion, repayment of certain borrowings, and general corporate purposes. The lead managers for the issue are SBI Capital Markets Limited and Yes Securities (India) Limited, while Link Intime India Private Limited serves as the registrar.
As of the morning of the opening day, the grey market premium (GMP) for Knack Packaging shares is trading at ₹40, indicating a strong expected listing gain of around 33% over the upper price band, according to market observers. The GMP is an unofficial indicator and may fluctuate.
Listing Timeline and Lot Size
The shares of Knack Packaging are expected to be listed on both the BSE and NSE on July 12, 2026. The minimum lot size for retail investors is 100 shares, requiring an investment of ₹12,000 at the upper price band. For high net worth individuals (HNIs), the minimum application size is 14 lots (1,400 shares), amounting to ₹1,68,000.
The company has reserved 50% of the net offer for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and 35% for retail individual investors (RIIs). Employees are eligible for a discount of ₹10 per share on the issue price.
Company Profile and Financial Performance
Knack Packaging Limited is a leading manufacturer of rigid plastic packaging solutions, catering to sectors such as food and beverages, personal care, pharmaceuticals, and home care. The company operates manufacturing facilities in Tamil Nadu and Uttar Pradesh, with a combined installed capacity of over 10,000 metric tonnes per annum.
For the fiscal year ended March 31, 2026, the company reported revenue from operations of ₹450 crore, a 15% increase from ₹391 crore in the previous fiscal. Net profit for FY26 stood at ₹38 crore, compared to ₹32 crore in FY25, reflecting a profit growth of 18.75%. The company's EBITDA margin improved to 14.5% from 13.8% over the same period.
Industry Outlook and Valuation
The Indian packaging industry is projected to grow at a CAGR of 12-15% over the next five years, driven by rising consumer demand and increased focus on sustainable packaging. Knack Packaging aims to capitalize on this growth by expanding its product portfolio and enhancing operational efficiencies. At the upper price band of ₹120, the IPO is priced at a P/E ratio of approximately 18.5 times its FY26 earnings, which analysts consider reasonably valued compared to peers such as Supreme Industries and Time Technoplast.
According to a statement from the company's management, "The response from anchor investors has been encouraging, with several domestic and foreign institutional investors subscribing to the anchor book on June 30, 2026. We are confident that the IPO will receive a good response from all categories of investors."
