India's packaging industry has been on a steady growth trajectory, riding the tailwinds of expanding food processing, agri-exports, and industrial demand. Knack Packaging Limited, one of the leading names in printed and laminated woven polypropylene bags, has chosen this moment to enter the public markets with its maiden mainboard IPO. The issue opened for subscription on July 1, 2026 and closes on July 3 — making this one of the more significant mainboard listings of the month.
Knack Packaging IPO Details :-
|
Detail |
Information |
|
IPO Open Date |
July 1, 2026 |
|
IPO Close Date |
July 3, 2026 |
|
Price Band |
₹161 – ₹170 per share |
|
Face Value |
₹10 per equity share |
|
Total Issue Size |
₹439.50 crores (2,58,52,941 shares) |
|
Fresh Issue |
₹380 crores (2,23,52,941 shares) |
|
Offer for Sale |
35,00,000 equity shares |
|
Issue Type |
Book Building — Mainboard |
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Listing Exchange |
BSE and NSE |
|
Anchor Bidding Date |
June 30, 2026 |
|
Allotment Date |
July 6, 2026 |
|
Refund / Demat Credit |
July 7, 2026 |
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Listing Date |
July 8, 2026 |
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Cut-off Time |
July 3, 2026, 5:00 PM |
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About Knack Packaging: What the Company Does
Founded and headquartered in Ahmedabad, Gujarat, Knack Packaging Limited manufactures printed and laminated woven polypropylene (PLWPP) bags, including pinch bottom variants — a category of industrial packaging that serves a wide range of end-use industries including food processing, pet food, agriculture, chemicals, fertilisers, building materials, and other industrial applications.
What distinguishes Knack Packaging from many mid-size packaging manufacturers is its end-to-end, fully integrated production model. The company handles everything from raw material to finished product within its own facility in Gujarat — spanning 1.12 million square feet with an installed capacity of 36,400 metric tonnes per annum (MTPA). This vertical integration directly supports stronger quality control and lower per-unit costs relative to companies that outsource intermediate processes.
Over the years, the company has cultivated strong relationships with reputed domestic and international clients. Its customer list includes marquee names like Cargill, KRBL, Drools, and Ebro Foods — brands with exacting quality requirements that lend meaningful credibility to Knack's manufacturing standards and supply reliability.
What the IPO Money Will Be Used For
The total issue comprises a fresh issue of ₹380 crores and an OFS of 35,00,000 shares. The OFS proceeds go entirely to the selling shareholders — the company benefits only from the fresh issue component.
|
Purpose |
Amount (₹ Crores) |
|
Setting up a new manufacturing facility at Borisana, Kadi, Mehsana, Gujarat |
₹320.00 |
|
General Corporate Purposes |
Balance |
The allocation is notable for its single-minded focus: ₹320 crores out of ₹380 crores in fresh issue proceeds — nearly 84% — is earmarked for one large, greenfield manufacturing facility in Mehsana. This is productive, capacity-driven use of IPO proceeds rather than working capital top-ups or promoter exits, and it reflects management's confidence in forward demand.
Market Lot and Application Amounts
|
Application |
Lots |
Shares |
Amount |
|
Retail Minimum |
1 |
88 |
₹14,960 |
|
Retail Maximum |
13 |
1,144 |
₹1,94,480 |
|
S-HNI Minimum |
14 |
1,232 |
₹2,09,440 |
|
S-HNI Maximum |
66 |
5,808 |
₹9,87,360 |
|
B-HNI Minimum |
67 |
5,896 |
₹10,02,320 |
One of the more investor-friendly features of this issue compared to recent SME IPOs is the minimum retail application of just ₹14,960 — a fraction of the ₹2–2.7 lakh minimum applications seen in many SME issues this season — making it accessible to a much broader base of retail investors.
IPO Reservation
|
Investor Category |
Shares Offered |
% of Issue |
|
Anchor Investors |
77,20,587 |
29.86% |
|
QIB (excluding Anchor) |
51,40,948 |
19.89% |
|
NII (HNI) |
38,58,461 |
14.92% |
|
Retail Investors |
90,03,075 |
34.82% |
Anchor bidding took place on June 30, 2026, with ₹131.25 crores raised from anchor investors across 77,20,587 shares. The anchor lock-in for 50% of allocated shares ends August 5, 2026 (30 days), and the remaining 50% unlocks on October 4, 2026 (90 days).
Financial Performance: Consistent, Accelerating Growth
(All figures in ₹ crores)
|
Period Ended |
Revenue |
Expenses |
PAT |
Assets |
|
FY2024 |
₹659.01 |
₹597.26 |
₹45.98 |
₹379.38 |
|
FY2025 |
₹747.38 |
₹648.15 |
₹73.81 |
₹449.36 |
|
FY2026 |
₹843.77 |
₹716.69 |
₹92.72 |
₹595.25 |
Knack Packaging's three-year financial track record is one of the cleanest in the current IPO pipeline. Revenue has grown from ₹659 crores in FY24 to ₹843.77 crores in FY26 — a 28% increase over two years — while PAT has more than doubled from ₹45.98 crores to ₹92.72 crores over the same period. There are no year-on-year setbacks, no extraordinary adjustments inflating the numbers, and no FY25 dip that needs explaining. For a manufacturing business operating in a commoditised-looking category, these are genuinely strong numbers, suggesting pricing power, efficient cost management, and operational scale working together.
The PAT margin has also expanded meaningfully — from roughly 7% in FY24 to nearly 11% in FY26 — a signal of operating leverage as fixed costs are spread over a growing revenue base.
Peer Comparison
|
Company |
EPS (₹) |
P/E |
RoNW % |
NAV (₹) |
|
Time Technoplast Limited |
9.99 |
17.86x |
13.37% |
84.40 |
|
TCPL Packaging Limited |
107.47 |
28.19x |
14.34% |
791.28 |
|
Mold-tek Packaging Limited |
21.93 |
31.83x |
10.98% |
207.57 |
Knack Packaging's RoNW of 35.47% is more than double the RoNW of all three listed peers. Peers are currently trading in the 17x–32x P/E range. Since Knack's own P/E is not available in the offer document (marked N/A), investors will need to use EV/EBITDA, P/BV, or back-calculate their own implied PE based on the issue price and earnings to form a view on relative valuation.
Strengths Worth Noting
Three consecutive years of uninterrupted revenue and profit growth — with PAT more than doubling from FY24 to FY26 — and no extraordinary adjustments distorting the trajectory. The operating metrics are genuinely superior: ROCE of 46.71% and ROE of 35.75%, both well ahead of the entire listed peer set, and an EBITDA margin of 20.42% that is unusually strong for a packaging manufacturer. The company's anchor investor participation — with ₹131.25 crores subscribed at the anchor bidding stage — provides early institutional validation of the pricing. The three SEBI-registered lead managers (Systematix, IDBI Capital, and Pantomath) bring credibility to the issue management process, while the blue-chip client roster (Cargill, KRBL, Drools, Ebro Foods) underscores product quality. The minimum retail lot of just ₹14,960 makes this accessible to a far broader investor base than most SME issues open this week.
Risks to Consider Before Applying
The P/E ratio being marked "N/A" in the offer documents makes standard earnings-multiple benchmarking against peers difficult. At approximately 5.5x book value, the issue carries a meaningful P/BV premium — effectively pricing in strong future execution, which raises the bar post-listing. The company's revenue base, while growing, is still concentrated in a single product category (PLWPP bags) and a single geography (Gujarat), adding sector and location concentration risk. The ₹320 crore greenfield manufacturing facility at Mehsana is a large, single-site capex commitment — delays in commissioning or cost overruns would directly affect FY27-FY28 earnings expectations. Raw material costs, primarily polypropylene (a petrochemical derivative), are subject to global commodity price volatility. Finally, the OFS component means approximately ₹59.50 crores of issue proceeds flow to existing shareholders rather than the company.
How To Apply for the IPO ?
- Login or Open demat account with JM Financial Services / JM PRO app: Open the JM PRO app or JM Financial Services website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
How To Check the Allotment Status of IPO?
Steps to check IPO allotment status on JM Pro app:
- Log in to the JM Pro app.
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.