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Knack Packaging makes a healthy stock market debut, listing at Rs 188 on the NSE and Rs 186 on the BSE, delivering around a 10% premium over its issue price of Rs 170.
Knack Packaging IPO Listing.
Knack Packaging IPO Listing: Shares of packaging solutions company Knack Packaging made a strong debut on the stock exchanges on Wednesday, listing at a premium of over 10 per cent against the issue price. The stock opened at Rs 188 on the NSE, a gain of Rs 18 or 10.59 per cent over its IPO price of Rs 170 per share.
On the BSE, the shares debuted at Rs 186, reflecting a premium of Rs 16 or 9.41 per cent.
The company’s market capitalisation stood at Rs 2,290.68 crore.
The listing exceeded indications from the grey market, where the company’s shares were trading at an estimated premium of around Rs 9 before the debut, implying a likely listing price of about Rs 179.
Knack Packaging IPO: Should You Buy, Sell Or Hold?
Shivani Nyati, head of wealth at Swastika Investmart Ltd, said, “Knack Packaging made a healthy stock market debut, listing at Rs 188 on the NSE and Rs 186 on the BSE, delivering around a 10% premium over its issue price of Rs 170. The listing was better than grey market expectations.”
The company is backed by strong fundamentals, including healthy revenue growth, improving profitability, high ROE and ROCE, and robust operating margins. Its reasonable valuation and fully integrated manufacturing capabilities provide a competitive advantage, she added.
“However, investors should keep an eye on customer concentration risk and the successful execution of its new manufacturing facility, which will be crucial for future growth,” Nyati said.
He also said, “Our post-listing view remains positive. Investors who have received allotment can continue to hold the stock for further upside, while maintaining a stop-loss at Rs 175 to manage downside risk. Fresh investors should consider entering on dips after monitoring the company’s upcoming quarterly performance.”
Knack Packaging IPO Details
Knack Packaging had raised Rs 380 crore through its initial public offering (IPO), which comprised a fresh issue of 2.24 crore equity shares. The public issue also included an offer for sale (OFS) of up to 35 lakh shares worth Rs 59.50 crore by existing promoters.
The IPO was priced in the range of Rs 161-170 per share and remained open for subscription between July 1 and July 3. Investors were required to apply for a minimum of 88 shares.
The issue attracted robust demand across investor categories, with the IPO being subscribed 83.33 times overall. According to NSE data, bids were received for over 158.02 crore equity shares against 1.89 crore shares on offer.
Institutional investors led the demand, with the Qualified Institutional Buyers (QIB) portion subscribed 154.34 times. The Non-Institutional Investors (NII) category was subscribed 139.81 times, while the retail investors’ segment received bids 20.07 times the shares reserved.
The company plans to utilise the proceeds from the fresh issue to partly fund the development of a new manufacturing facility at Borisana in Kadi, Mehsana district of Gujarat, while the remaining amount will be used for general corporate purposes. Proceeds from the OFS will go directly to the selling shareholders.
Established in 2013, Gujarat-based Knack Packaging manufactures printed and laminated woven polypropylene bags, including pinch-bottom bags, used across sectors such as food, agriculture, fertilisers, pet feed and industrial packaging. The company operates four manufacturing facilities in Gujarat with an installed production capacity of 43,300 metric tonnes per annum (MTPA).
Knack Packaging has a customer base of more than 1,950 clients spread across 71 countries, with exports contributing 56.3 per cent of its revenue in FY26, highlighting its strong presence in international markets.
About the Author
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalis…Read More
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