Knack Packaging Limited is entering the primary market with a ₹439.5 crore initial public offering backed by healthy revenue growth, double-digit net margins, a significant export presence and a large capacity expansion plan. The Knack Packaging IPO opens at a price band of ₹161 to ₹170 per share, with the company planning to use most of the fresh issue proceeds to fund its new manufacturing facility in Gujarat.
The Knack Packaging IPO analysis is particularly relevant for investors evaluating the company’s financial performance, business model, expansion strategy, valuations and key risks before making an investment decision. While strong margins, high return on equity and a growing presence in value-added woven packaging strengthen the investment case, raw material volatility, working capital requirements and execution of the planned capacity expansion remain important considerations.
This detailed Knack Packaging IPO review covers the IPO price, issue size, listing date, allotment timeline, grey market premium, subscription trends, business model, financial performance, peer comparison, strengths, risks and long-term outlook. It aims to help investors understand whether the company’s fundamentals and growth prospects justify its valuation rather than relying only on subscription numbers or unofficial GMP trends.
Table of Contents
- Knack Packaging IPO Details at a Glance
- What Does Knack Packaging Limited Do?
- How Does Knack Packaging Make Money?
- What Is Knack Packaging’s Position in the Packaging Industry?
- How Will Knack Packaging Use the IPO Proceeds?
- Why Is Capacity Expansion Central to the IPO Story?
- Knack Packaging Financial Performance Analysis
- What Do Knack Packaging’s Margins and Returns Indicate?
- Knack Packaging Debt and Renewable Energy Strategy
- Knack Packaging IPO Valuation and Peer Comparison
- Knack Packaging IPO GMP and Subscription Status
- What Are the Key Strengths of Knack Packaging?
- What Are the Major Risks in the Knack Packaging IPO?
- Should Investors Apply for the Knack Packaging IPO?
- What Should Investors Check Before Applying?
- Conclusion
The Knack Packaging IPO is a ₹439.5 crore public issue comprising a ₹380 crore fresh issue and an offer for sale of approximately ₹59.5 crore. The price band has been fixed at ₹161 to ₹170 per share, while the proposed listing on the NSE and BSE is scheduled for 8 July 2026.
| Particulars |
Details |
| Company |
Knack Packaging Limited |
| IPO size |
₹439.5 crore |
| Fresh issue |
₹380 crore |
| Offer for sale |
Approximately ₹59.5 crore |
| Price band |
₹161 to ₹170 per share |
| Lot size |
88 shares |
| Minimum retail investment |
₹14,960 at upper price band |
| Maximum retail application |
13 lots or 1,144 shares |
| Maximum retail investment |
₹1,94,480 at upper price band |
| IPO opening date |
1 July 2026 |
| IPO closing date |
3 July 2026 |
| Proposed listing date |
8 July 2026 |
| Stock exchanges |
NSE and BSE |
| Market capitalisation at upper band |
Approximately ₹2,080 crore |
| Implied dilution |
Approximately 21% |
| Registrar |
MUFG Intime India |
| Book running lead managers |
Systematix Corporate Services, IDBI Capital Markets & Securities and Pantomath Capital Advisors |
The fresh issue consists of approximately 2.24 crore equity shares. The offer for sale includes up to 35 lakh shares being sold by existing promoters.
It is important to distinguish between the two components. The ₹380 crore raised through the fresh issue will go to the company and can be deployed for business purposes. In contrast, proceeds from the OFS will go to the selling shareholders and will not strengthen Knack Packaging’s balance sheet or fund its expansion.
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Get all the latest updates on the Knack Packaging IPO, including the price band, issue size, subscription timeline and important listing-related developments.
Knack Packaging IPO anchor investment
Ahead of the public issue, Knack Packaging raised approximately ₹131.2 crore from anchor investors on 30 June 2026.
The anchor book included institutional participants such as:
- Bank of India Investment Managers
- ITI Mutual Fund
- Bandhan Mutual Fund
- JM Financial Mutual Fund
- SBI General Insurance
- Axis New Opportunities AIF-II
- Ashoka India Equity Investment Trust
- Sundaram AIF
- Alchemy Long Term Ventures Fund
Participation by institutional investors indicates interest in the IPO. However, anchor investment alone should not be considered a substitute for evaluating the company’s financial performance, valuation and business risks.
Knack Packaging Limited is an integrated packaging solutions company specialising in value-added woven polypropylene packaging. Incorporated in 2013 and based in Gujarat, the company manufactures printed and laminated woven polypropylene bags and specialised pinch-bottom bags used across food, agriculture, animal feed and pet food applications.
The company primarily operates in the Printed and Laminated Woven Polypropylene, or PLWPP, packaging segment.
Its main products include:
These products combine the durability of woven polypropylene with printing and lamination capabilities.
The result is packaging that provides structural strength while allowing brands to improve product presentation and shelf appeal. This is particularly useful for industries that require packaging capable of handling heavier products while also displaying branding and product information.
Knack Packaging caters to B2B and B2B2C customers across food, agriculture, pet food and other high-strength packaging applications.
Knack Packaging generates revenue by manufacturing and supplying customised woven polypropylene packaging solutions to domestic and international customers. Its integrated manufacturing operations cover design, printing, lamination and bag conversion, allowing the company to capture more value internally while maintaining control over product quality and production efficiency.
The integrated business model is an important part of the company’s competitive positioning.
Instead of outsourcing multiple stages of manufacturing, Knack Packaging handles several processes within its production ecosystem. This can provide benefits such as:
- Better quality control
- Shorter production lead times
- Improved manufacturing efficiency
- Greater customisation capability
- Better control over costs and margins
Customised and value-added packaging can also offer better pricing potential than standard commodity packaging.
This is visible in the company’s profitability. Knack Packaging reported an EBITDA margin of approximately 21% and a net profit margin of around 11% in FY26, both of which compare favourably with several listed packaging companies.
Knack Packaging has built a meaningful presence in the value-added woven packaging industry, with an estimated 10% domestic market share in its PLWPP packaging category. Its export operations across more than 70 countries provide geographic diversification, while growing demand for durable and printable packaging supports the company’s long-term industry opportunity.
Woven polypropylene packaging is commonly used for products requiring durability and high load-bearing capacity, including:
- Food grains
- Fertilisers
- Animal feed
- Agricultural products
- Pet food
The addition of printing and lamination increases the commercial value of these products by combining strength with branding capabilities.
Knack Packaging has also developed a significant international business. Approximately 56% of its FY26 revenue came from exports, with around 30% of revenue coming specifically from the US and Mexico.
This export presence offers two important benefits.
First, the company is not entirely dependent on Indian demand. Weakness in one geographic market can potentially be offset by opportunities elsewhere.
Second, exposure to international customers can support growth as demand for value-added packaging increases globally.
However, exports also introduce risks related to foreign exchange movements, international demand conditions, trade policies and customer concentration.
Knack Packaging plans to use the fresh issue proceeds primarily to finance a new manufacturing facility at Borisana, Kadi, Mehsana in Gujarat. The expansion represents the central growth strategy behind the IPO, while a portion of the funds will also be available for general corporate purposes.
The total planned capital expenditure for the new manufacturing facility is approximately ₹456 crore.
Of this:
-
Around ₹90 crore has already been deployed
-
Approximately ₹320 crore is expected to be funded through IPO proceeds
-
The remaining fresh issue proceeds will support general corporate purposes and other permitted requirements
Funding the expansion largely through equity can help the company increase manufacturing capacity without taking on a proportionate amount of additional debt.
However, the success of this strategy will ultimately depend on how quickly the new capacity becomes operational and reaches efficient utilisation levels.
Knack Packaging plans to increase its manufacturing capacity from approximately 43,300 MTPA to around 76,000 MTPA by October 2027. The addition of 32,710 MTPA represents an increase of roughly 75%, making successful capacity ramp-up the most important growth trigger for the company after the IPO.
The company’s existing effective capacity is approximately 43,300 metric tonnes per annum, with utilisation of around 82% in FY26.
The new facility is expected to add 32,710 MTPA of manufacturing capacity.
Once completed, total capacity is expected to reach approximately 76,000 MTPA by October 2027.
This expansion is important because existing utilisation levels indicate limited room for substantial volume growth without additional manufacturing infrastructure.
If demand from domestic and export markets remains healthy, the new capacity could support:
- Higher production volumes
- Revenue growth
- Greater export opportunities
- Better absorption of fixed costs
- Potential operating leverage
The expansion could therefore become a major earnings driver over the next few years.
However, investors should also understand the opposite scenario.
If the project faces delays, cost overruns or slower-than-expected demand, the larger equity base and underutilised manufacturing assets could temporarily reduce return ratios.
Therefore, execution is as important as the scale of the expansion itself.
Knack Packaging entered the IPO with FY26 revenue of approximately ₹823 crore, EBITDA of ₹170 crore and profit after tax of ₹93 crore. Volume growth, improving unit economics and strong margins indicate healthy operating performance, while the planned capacity expansion could determine whether this growth can be sustained over the medium term.
Key FY26 financial and operating figures include:
| Financial Metric |
FY26 Performance |
| Revenue |
Approximately ₹823 crore |
| EBITDA |
₹170 crore |
| Profit after tax |
₹93 crore |
| EBITDA margin |
Approximately 21% |
| Net profit margin |
Approximately 11% |
| Gross margin |
Approximately 40% |
| Volume sold |
38,157 MT |
| Pre-issue EPS |
₹9.3 |
| Net worth |
₹308 crore |
| ROE |
Approximately 35% |
| Debt |
Approximately ₹190 crore |
| Export revenue contribution |
Approximately 56% |
The company’s volume sold reached 38,157 MT in FY26. Volume grew at a CAGR of approximately 16% over the previous three financial years.
This growth is significant because it indicates that the improvement in financial performance has been supported by expanding business volumes rather than depending entirely on pricing changes.
Another important metric is EBITDA per kilogram.
Knack Packaging’s EBITDA per kg increased from ₹23 in FY23 to approximately ₹45 in FY26, almost doubling within three years.
This indicates stronger unit economics and improved profitability per unit of output.
Knack Packaging’s approximately 21% EBITDA margin, 11% net profit margin and 35% ROE indicate strong profitability and capital efficiency compared with several listed packaging companies. These metrics are among the most important differentiators in the IPO, although maintaining them during a large expansion cycle will be crucial.
The company reported a gross margin of approximately 40% in FY26.
After accounting for operating costs, the EBITDA margin stood at around 21%, while the net profit margin was approximately 11%.
A comparison of net margins highlights the difference:
Knack Packaging’s margin advantage suggests that its value-added products, integrated manufacturing model and operating efficiency are contributing positively to profitability.
The company also reported an ROE of approximately 35% in FY26.
A high ROE indicates that the company has generated substantial profit relative to shareholders’ equity.
However, investors should expect the post-IPO ROE trajectory to depend on capacity utilisation. Since the fresh issue will increase the equity base, returns could moderate temporarily until the new facility contributes meaningfully to earnings.
Knack Packaging had debt of approximately ₹190 crore before the IPO, mainly related to working capital and renewable energy capital expenditure. The net debt-to-equity ratio of around 0.6 is expected to decline to approximately 0.3 after the issue, while captive renewable energy is helping the company manage power costs.
The company’s leverage appears moderate considering its scale and expansion plans.
As the fresh issue increases the equity base, the net debt-to-equity ratio is expected to improve from approximately 0.6:1 to around 0.3:1.
This could provide greater balance sheet flexibility.
Energy management is another notable aspect of the business.
Nearly 80% of Knack Packaging’s power requirements are met through captive renewable energy sources.
The company aims to increase this figure to 90% by 2030.
For a manufacturing company, greater reliance on captive energy can reduce exposure to electricity cost volatility. It also strengthens the company’s sustainability positioning, although it does not eliminate broader environmental concerns associated with polymer-based packaging.
At the upper price band of ₹170 per share, Knack Packaging is valued at a market capitalisation of approximately ₹2,080 crore. Depending on whether pre-issue or post-issue earnings and equity are considered, the IPO valuation is estimated at roughly 18 to 22 times earnings, placing it within the valuation range of listed packaging companies.
The company’s estimated enterprise value at the upper price band is approximately ₹2,270 crore. Based on FY26 EPS of ₹9.3 and the pre-issue equity base, the historical P/E multiple works out to around 18 times.
Some estimates place the post-issue P/E multiple at around 22 times after considering the expansion in equity capital. The difference between the pre-issue and post-issue valuation is important because the fresh issue increases the number of outstanding shares, affecting per-share earnings calculations.
A comparison with listed packaging companies provides better context for assessing the IPO valuation.
| Valuation Metric |
Knack Packaging / Peer Comparison |
| IPO price at upper band |
₹170 per share |
| Market capitalisation |
Approximately ₹2,080 crore |
| Enterprise value |
Approximately ₹2,270 crore |
| Historical P/E |
Around 18x |
| Estimated post-issue P/E |
Around 22x |
| Listed peer P/E range |
Approximately 18-28x |
Listed packaging companies such as TCPL Packaging, Mold-Tek Packaging, Time Technoplast and EPL trade at P/E multiples of approximately 18 to 28 times, according to the supplied peer comparison data.
This suggests that Knack Packaging is not entering the market at a deeply discounted valuation. However, its estimated P/E multiple remains broadly within the range of listed packaging companies.
The Knack Packaging IPO analysis should also consider the company’s financial performance and future growth plans alongside its P/E valuation. Knack Packaging has demonstrated healthy profitability, improving unit economics and strong return ratios, while its planned capacity expansion provides a visible route for future volume growth.
Therefore, the IPO valuation appears reasonable relative to the company’s current financial performance and expansion plans. However, the key factor for investors will be whether Knack Packaging can successfully utilise its additional capacity and generate sufficient earnings growth to justify the post-issue valuation.
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Want to compare Knack Packaging with other recently listed manufacturing and industrial companies? Use this IPO dashboard to review valuations, subscription trends and listing performance across sectors.
The Knack Packaging IPO GMP indicated positive grey market sentiment ahead of listing, while the issue also witnessed strong investor demand. However, grey market premium is unofficial and unregulated, meaning investors should evaluate business fundamentals, valuation and risks instead of treating GMP as a reliable listing forecast.
Before the issue opened, the Knack Packaging IPO GMP was reported at approximately ₹23 per share.
Against the upper price band of ₹170, this implied a grey market price of approximately ₹193 and an indicative listing premium of around 13.5%.
Some later reports indicated GMP levels suggesting potential listing gains of up to approximately 17%.
These figures can change rapidly.
SEBI does not regulate grey market activity, and GMP does not guarantee the actual listing price.
Knack Packaging IPO subscription
Investor demand strengthened during the subscription period.
The IPO was reportedly subscribed around four times by the second day.
By the end of the third day, some reports indicated overall subscription of approximately 83 times.
Such high oversubscription indicates significant bidding interest. At the same time, it reduces the probability of allotment, particularly for applicants in heavily subscribed categories.
Investors should therefore distinguish between three separate factors:
-
Subscription demand, which indicates bidding interest.
-
GMP, which reflects unofficial market sentiment.
-
Business fundamentals, which determine the long-term investment case.
The third factor remains the most important for investors evaluating the company beyond listing day.
Knack Packaging’s major strengths include its niche product portfolio, integrated manufacturing operations, high profitability, growing export presence, improving unit economics and a clearly defined capacity expansion strategy. Together, these factors create a fundamentally strong business profile, although future performance will depend on successful execution.
1. Presence in a niche, value-added segment
Knack Packaging operates in the PLWPP and pinch-bottom woven bag segment.
Customisation, printing and lamination capabilities differentiate these products from basic commodity packaging and can support better margins and customer retention.
2. Integrated manufacturing operations
The company controls multiple stages of manufacturing, including design, printing, lamination and bag conversion.
This provides greater control over quality, production schedules and operating costs.
3. Strong profitability
The company’s approximately 21% EBITDA margin and 11% net profit margin compare favourably with several listed peers.
The improvement in EBITDA per kg from ₹23 in FY23 to ₹45 in FY26 further indicates strengthening unit economics.
4. Diversified export presence
Exports contributed approximately 56% of FY26 revenue, and the company serves customers across more than 70 countries.
This provides access to multiple markets and reduces complete dependence on domestic demand.
5. Significant capacity growth opportunity
The planned 75% increase in capacity provides a visible route for future volume growth.
If the new facility achieves healthy utilisation, it could support revenue and profit growth over the medium term.
6. Strong return ratios and moderate leverage
An ROE of approximately 35% reflects healthy capital efficiency.
The expected reduction in net debt-to-equity after the IPO could also strengthen the company’s financial position.
7. Increasing use of captive renewable energy
Around 80% of power requirements are already met through captive renewable sources.
This can support cost management while reducing exposure to conventional power price fluctuations.
The main risks in the Knack Packaging IPO include raw material price volatility, execution challenges related to the new manufacturing facility, working capital requirements, customer concentration, competitive pressure and long-term environmental scrutiny surrounding plastic packaging.
These factors should be considered alongside the company’s strong financial performance.
1. Raw material price volatility
Polypropylene is a key input for the company’s products.
Since polymer prices are influenced by crude oil prices and broader market conditions, sudden increases in input costs can affect margins if the company cannot pass them on to customers quickly.
2. Capacity expansion execution risk
The new manufacturing project involves capital expenditure of approximately ₹456 crore.
Any delays, cost overruns or slower-than-expected capacity utilisation could affect future returns.
This is particularly important because the expansion is the central growth driver behind the IPO.
3. Working capital requirements
Export-oriented B2B manufacturing businesses can require significant investment in inventory and receivables.
Weak working capital management could affect operating cash flows even when reported revenue and profits remain healthy.
4. Export market exposure
Exports provide diversification but also expose the company to:
- Foreign exchange fluctuations
- International economic conditions
- Trade policy changes
- Country-specific demand trends
Around 30% of FY26 revenue came from the US and Mexico, making developments in these markets particularly relevant.
5. Customer concentration
Dependence on major customers can create revenue risks.
The loss of an important client, pricing pressure or delayed payments could affect financial performance.
Investors should examine the latest red herring prospectus for detailed customer concentration data.
6. Competitive pressure
Knack Packaging competes with companies operating across woven sacks, flexible packaging and other packaging formats.
Greater competition can affect pricing power, customer acquisition and margins.
7. Environmental and regulatory concerns
Polymer-based packaging faces increasing scrutiny related to plastic waste and sustainability.
Although the company’s renewable energy initiatives strengthen its environmental positioning, they do not eliminate regulatory risks related to the use and disposal of plastic packaging.
The Knack Packaging IPO presents a favourable long-term investment case based on strong margins, high ROE, improving unit economics, export diversification and a significant capacity expansion plan. However, the IPO is more suitable for fundamentally focused investors comfortable with execution and sector risks than for those relying primarily on GMP-driven listing expectations.
A closer Knack Packaging IPO review highlights several attractive business characteristics. The company operates in a specialised packaging segment, has integrated manufacturing capabilities and generates higher margins than several listed peers.
Financially, the company reported:
- ₹823 crore in FY26 revenue
- ₹170 crore in EBITDA
- ₹93 crore in profit after tax
- Approximately 21% EBITDA margin
- Approximately 11% net margin
- Around 35% ROE
Its growth strategy is also clearly defined.
Rather than presenting only a broad expansion vision, the company plans to increase capacity by approximately 75% through a new manufacturing facility funded substantially from the IPO proceeds.
The valuation appears fair to reasonable when compared with listed packaging companies, particularly considering Knack Packaging’s margins and return ratios.
However, the investment case is not without risks.
The company must successfully execute a large expansion programme, maintain demand, manage working capital, protect margins from raw material volatility and navigate risks associated with export markets.
Therefore, the Knack Packaging IPO appears to carry a subscribe bias from a long-term investment perspective, provided investors are comfortable with the company’s sector-specific and execution risks.
Investors focused mainly on short-term listing performance should be more cautious about relying on GMP. Grey market sentiment can change rapidly and does not guarantee the actual listing price.
Before making an investment decision, investors should review the company’s prospectus, customer concentration, cash flow performance, category-wise subscription data and updated peer valuations. The most important consideration is whether Knack Packaging can successfully convert its planned 75% capacity expansion into sustainable revenue and earnings growth.
Investors should specifically evaluate:
-
The latest red herring prospectus: Review detailed financial statements, cash flows, contingent liabilities and risk factors.
-
Customer concentration: Understand how much revenue depends on the company’s largest domestic and international customers.
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Working capital position: Compare profit growth with operating cash flows, receivables and inventory requirements.
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Capacity expansion timeline: Track the progress of the new facility and any changes in expected commissioning.
-
Peer valuations: Compare Knack Packaging’s margins, ROE, leverage and valuation with TCPL Packaging, Mold-Tek Packaging, Time Technoplast and EPL.
-
Final subscription data: Examine demand separately across QIB, NII and retail investor categories.
-
Updated GMP: Treat it only as an indicator of unofficial sentiment rather than a basis for investment.
-
Personal risk profile: Consider whether the company’s expansion, export and sector risks align with the investor’s investment horizon and portfolio strategy.
Knack Packaging enters the public market with a combination of strong profitability, growing volumes, high export contribution and a substantial capacity expansion plan. Its approximately 21% EBITDA margin, 11% net margin and 35% ROE differentiate the company from several listed packaging peers, while the proposed 75% capacity addition provides a visible growth opportunity.
The ₹439.5 crore IPO is primarily growth-oriented because ₹380 crore is being raised through a fresh issue. A large portion of these funds will support the company’s new manufacturing facility in Gujarat, which is expected to increase total capacity to approximately 76,000 MTPA by October 2027.
From an investor perspective, the central argument in favour of the IPO is straightforward: Knack Packaging has demonstrated healthy financial performance and is now raising capital to increase its production capacity.
The central risk is equally clear: the company must successfully execute the expansion and generate enough demand to utilise the additional capacity efficiently.
At an estimated valuation of approximately 18 to 22 times earnings, the IPO does not appear deeply discounted. However, the pricing looks reasonable when considered alongside the company’s margins, return ratios, export presence and growth plans.
Overall, the Knack Packaging IPO appears more suitable for long-term investors evaluating business fundamentals and future earnings growth than for applicants making decisions solely on the basis of GMP or listing expectations.
Frequently Asked Questions
1. What is the Knack Packaging IPO size?
The Knack Packaging IPO size is approximately ₹439.5 crore. It consists of a ₹380 crore fresh issue and an offer for sale of approximately ₹59.5 crore by existing promoters.
2. What is the Knack Packaging IPO price?
The Knack Packaging IPO price band has been fixed at ₹161 to ₹170 per equity share.
3. What is the minimum investment in the Knack Packaging IPO?
The minimum retail application is one lot of 88 shares. At the upper price band of ₹170, the minimum investment is ₹14,960.
4. What is the Knack Packaging IPO listing date?
The proposed Knack Packaging IPO listing date is 8 July 2026 on the NSE and BSE.
5. What is the Knack Packaging IPO GMP?
The IPO GMP was initially reported at approximately ₹23 per share, indicating an unofficial premium of around 13.5% over the upper price band. Later GMP reports suggested higher potential premiums. However, GMP is unofficial, unregulated and can change rapidly.
6. How will Knack Packaging use the IPO proceeds?
The company plans to use most of the fresh issue proceeds to finance its new manufacturing facility at Borisana, Kadi, Mehsana in Gujarat. A portion will also be used for general corporate purposes.
7. Should investors apply for the Knack Packaging IPO?
The IPO appears suitable for long-term investors who are comfortable with execution and industry risks. Strong profitability, high ROE, export diversification and capacity expansion support the investment case, while GMP should not be treated as a guarantee of listing returns.