| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹161 to ₹170 | 88 | 01st July, 2026 – 03rd July, 2026 | ₹439 Cr |
Knack Packaging Ltd
Knack Packaging Ltd. is one of India’s leading integrated, innovation-driven and export-oriented packaging solutions providers, specializing in Printed and Laminated Woven Polypropylene (PLWPP) bags and PLWPP Pinch Bottom bags. It serves diverse industries including food, pet food, agriculture, chemicals, fertilizers and building materials by offering customized, high-strength packaging solutions that enhance brand visibility, improve operational efficiency and reduce counterfeiting risks. The company holds an approximately 10.1% share of the Indian flexible bulk PLWPP bags market in FY25 and is among the early pioneers in BOPP/PLWPP bag manufacturing. It is also the first company in India and Asia to introduce laser-cut and easy-open features in PLWPP pinch bottom bags. Backed by over two decades of promoter experience, the company offers a wide portfolio of value-added packaging solutions with multiple customization options. The company operates a fully backward-integrated manufacturing model, with capabilities spanning polypropylene granule processing to the production of finished packaging products. Its manufacturing facilities in Gujarat have an installed capacity of 43,300 MTPA and are supported by advanced machinery and a workforce of 1,959 employees. Following a B2B2C business model, the company exports to over 71 countries and serves marquee domestic and global customers, including KRBL Limited, DCM Shriram Limited, Drools Pet Food Private Limited, Baba Agro Food Limited, Ebro India Private Limited and Cargill. Additionally, its in-house design and printing capabilities, supported by a library of over 73,000 printing cylinders across 1,950+ customers and 13,379 SKUs, enable consistent brand representation, strengthen customer retention and reinforce its competitive positioning in the value-added flexible packaging industry.
Objective of Knack Packaging Ltd
The IPO consists of an offer for sale of Rs. 60 crores and a fresh issue of Rs. 380 crores
- The net proceeds of the fresh issue are proposed to be utilized in the following manner:
- Partial funding of capital expenditure towards setting up of new manufacturing facility at Borisana situated at Kadi, Mehsana, Gujarat;
- General corporate purposes.
Rationale To Knack Packaging Ltd
Investment Rationale
Technology driven integrated operations supporting efficiency and scalability
Knack Packaging Ltd. has built a highly integrated and technology-enabled operating model that enhances manufacturing efficiency, optimizes supply chain management and supports scalable growth. At the core of its digital ecosystem is its proprietary platform, Knack Galaxy, which provides real-time visibility across procurement, production, inventory, dispatch and logistics, enabling seamless coordination between customers, suppliers and internal teams. The platform is integrated with Microsoft Dynamics 365 CRM for order management and SAP S/4HANA for production planning and resource allocation, creating a unified workflow that improves capacity utilization, minimizes manual intervention, reduces operational errors and enables faster decision-making. The company further strengthens its execution capabilities through continuous workforce development, with employees undergoing 20-30 days of structured training annually to ensure technical proficiency and adaptability to evolving manufacturing requirements. Operationally, the company follows a fully integrated approach across procurement, production and new product development, enabling greater control over quality, costs and delivery timelines. It maintains buffer inventory of critical raw materials, aligns procurement with its order pipeline and leverages bulk sourcing arrangements for polypropylene granules to mitigate supply disruptions, improve cost predictability and secure favourable commercial terms. Additionally, dedicated production lines and specialized machinery reduce changeover time, improve workflow efficiency, facilitate preventive maintenance and ensure consistent product quality. Collectively, these initiatives enhance operational resilience, support timely customer deliveries, improve manufacturing productivity and provide a scalable platform for sustainable margin expansion and long-term growth.
Strategically located manufacturing facility supported by renewable energy infrastructure and expansion potential
The company possesses strong technical expertise in designing and manufacturing complex, customized packaging solutions, providing a key competitive advantage in the value-added flexible packaging industry. Its capabilities span advanced bag construction techniques, multi-layer lamination and the integration of specialized features such as valve closures, laser-cut easy-open systems, integrated handles, perforation patterns and custom structural formats tailored to specific customer requirements. Supported by a systematic, process-driven manufacturing approach and stringent quality control protocols, the company consistently delivers products with high dimensional accuracy, material compatibility and uniform quality across production batches. This ability to translate complex customer specifications into scalable manufacturing solutions enables it to cater to premium applications where both functional performance and visual appeal are critical. The company’s in-house ink kitchen and imported spectrophotometer further strengthen its value proposition by ensuring precise colour matching, logo clarity and print consistency across production runs, allowing customers to maintain brand identity and shelf appeal. Its capability to repeatedly manufacture technically sophisticated packaging formats at scale has helped establish long-term relationships with customers that prioritize product reliability, packaging aesthetics and consistent brand representation. These differentiated manufacturing capabilities position the company to capture higher-value orders, strengthen customer retention and support sustainable growth in premium packaging segments.
Valuation of Knack Packaging Ltd
Knack Packaging Ltd. operates in the structurally growing flexible packaging industry, benefiting from rising demand across end-user segments such as food, pet food, agriculture, chemicals, fertilizers and building materials, alongside the increasing adoption of value-added, branded and sustainable packaging solutions. As one of India’s leading integrated manufacturers of Printed and Laminated Woven Polypropylene (PLWPP) bags, with an estimated 10.1% domestic market share, a fully backward-integrated manufacturing platform, exports to over 71 countries and long-standing relationships with marquee global and domestic customers, the company is well positioned to capitalize on favorable industry tailwinds. Its differentiated product portfolio, technological leadership in value-added packaging formats and digitally integrated manufacturing ecosystem provide strong competitive advantages, supporting both margin resilience and scalable growth. Financially, the company has delivered a robust growth trajectory, with revenue increasing to Rs. 823 crores in FY26, registering a 12% CAGR over FY24-FY26 period. EBITDA grew at a stronger 25% CAGR to Rs. 152 crores, with the EBITDA margin expanded to 18% in FY26, reflecting operating leverage, an improving product mix and enhanced operational efficiencies. PAT stood at Rs. 93 crores in FY26, recording an impressive 42% CAGR over the same period, underpinned by healthy profitability and disciplined execution. Looking ahead, higher capacity utilization, continued expansion in value-added packaging solutions, increasing export penetration and sustained operating leverage are expected to drive earnings growth. Backed by its integrated manufacturing capabilities, technological differentiation and strong financial performance, the company is well positioned to deliver sustainable revenue growth, margin expansion and long-term value creation. At the upper price band of Rs. 138, Knack Packaging Ltd. is valued at a P/E multiple of 18.3x based on FY26 earnings. Given the company’s historical growth track record, expanding margins, scalable business model and industry growth potential, we believe the valuation is justified. Thus, we recommend a “SUBSCRIBE” rating for this issue with a medium to long-term investment horizon.
What is the Knack Packaging Ltd IPO?
The initial public offer (IPO) of Knack Packaging Ltd offers an early investment opportunity in. A stock market investor can buy Knack Packaging Ltd IPO shares by applying in IPO before All Knack Packaging Ltd shares get listed at the stock exchanges. An investor could invest in Knack Packaging Ltd for short term listing gain or a long term.
How to apply for the Knack Packaging Ltd IPO through StoxBox?
To apply for the Knack Packaging Ltd IPO through StoxBox one can apply from the website and also from the app. Click here
When will the Knack Packaging Ltd IPO open?
Knack Packaging Ltd IPO is opening on 01st July 2026. Apply Now
What is the lot size of the Knack Packaging Ltd IPO?
The Lot Size of Knack Packaging Ltd 88 equity shares. Login to your account now.
When is the Knack Packaging Ltd IPO allotment date?
The allotment Date for Knack Packaging Ltd IPO is 06th July 2026. Login to your account now.
When is the Knack Packaging Ltd IPO listing date?
The listing Date for Knack Packaging Ltd is 08th July 2026. Login to your account now
What is the minimum investment required for the Knack Packaging Ltd IPO?
In the Retail segment the minimum investment required is Rs 14,960 Login to your account now
What is the maximum investment allowed for Knack Packaging Ltd IPO?
In the Retail segment the maximum investment requirement Rs 1,94,480 Login to your account now
What are the risks associated with investing in the Knack Packaging Ltd IPO?
- The company’s operations are significantly dependent on a limited number of key suppliers for the procurement of critical raw materials. As it does not have long-term contractual arrangements with these suppliers, the business remains exposed to potential supply disruptions, pricing volatility and procurement uncertainties. Any deterioration in relationships with key suppliers, delays in raw material availability or inability to source materials on competitive terms could adversely impact production schedules, operating margins and the company’s overall financial performance.
- The company derives a significant portion of its revenue from a concentrated base of existing customers, with a meaningful share of sales generated from a few key clients. Further, the absence of long-term contractual arrangements with these customers exposes the business to customer retention risk. Any loss of key customers, reduction in order volumes or inability to maintain long-standing relationships could adversely impact revenue growth, capacity utilization, profitability and the company’s overall financial performance.
When will the Knack Packaging Ltd IPO shares be credited to my Demat account?
The Knack Packaging Ltd will be credited to the account on allotment date which is 06th July 2026. Login to your account now
Where can I find the Knack Packaging Ltd IPO prospectus?
The prospectus of Knack Packaging Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE
