Knack Packaging Ltd IPO
Packaging
Price Band
₹161 – ₹170
Lot Size
88
Minimum Bid Quantity
88
Minimum Investment
₹14960
Issue Size
₹439.5Cr
Opens
2026-07-01
Closes
2026-07-03
Listing
08-07-2026
Subscription Status
Qualified Institutional Buyers
154.34 x
Non-Institutional Investor
139.61 x
Retail Individual Investor
19.56 x
Employees
9.17 x
Total
83.04 x
IPO Details
Issue Type
EQUITY
Face Value
₹10
Tick Size
1
ISIN
INE17QZ01016
Pre-Apply Available
No
Daily Bidding Time
10:00:00 - 17:00:00
About the Company
Knack Packaging Limited is engaged in the manufacturing of packaging solutions, primarily printed and laminated woven polypropylene (PLWPP) bags and PLWPP pinch bottom bags used across industries such as food products, pet food, agriculture, fertilisers, chemicals, construction materials, and consumer goods. The company offers a range of packaging products along with customised features such as laser-cut easy-open systems, zipper closures, windows, heat cuts, and branding solutions. Its customers include domestic and international businesses that use these bags for packaging products in powder and granule forms. The company operates through a vertically integrated manufacturing process that covers PP granule processing, tape production, fabric manufacturing, printing, lamination, and finished bag production. Knack Packaging has manufacturing facilities in Gujarat and exports its products to customers across 71 countries. The company also provides in-house printing and design services, supported by a large cylinder library developed for its customer base. Use of proceeds: This is a combination of a fresh issue of shares and an offer for sale. The net proceeds from the offer for sale will go to the selling shareholder, and those from the fresh issue will go to the company. They will be utilised for the following purposes: Partial funding of capital expenditure for setting up a new manufacturing facility at Borisana, Mehsana, Gujarat – Rs 320 crore General corporate purposes
Pros
- • The company claims to have a vertically integrated manufacturing setup that covers the entire production process, from PP granule processing and tape manufacturing to printing, lamination, and finished bag production. This allows it to manage multiple stages of production in-house and reduce dependence on third-party processors.
- • Knack Packaging claims to have developed proprietary digital systems such as Knack Galaxy, integrated with Microsoft Dynamics 365 and SAP S4 HANA, for managing procurement, production, inventory, dispatch, and logistics. The company states that these systems provide real-time visibility across its operations and supply chain.
- • The company claims to have the capability to manufacture technically complex packaging products with customised features such as laser-cut easy-open systems, valve closures, perforations, handles, multi-layer laminations, and specialised bag constructions. It also claims to use an in-house ink kitchen and an imported spectrophotometer for colour consistency across production batches.
Cons
- • The company is heavily dependent on a limited number of suppliers for raw material procurement. Its top 10 suppliers contributed Rs 435.56 crore (86.21%), Rs 326.18 crore (73.51%), and Rs 308.83 crore (76.99%) of total raw material purchases in FY26, FY25, and FY24, respectively. Any failure to maintain relationships with these suppliers, disruptions in supply, or inability to secure favourable procurement terms may adversely affect the company's operations and profitability.
- • A significant portion of the company's revenue is generated from repeat customers. Revenue from repeat orders amounted to Rs 771.96 crore (93.75%), Rs 695.21 crore (94.40%), and Rs 624.11 crore (95.35%) in FY26, FY25, and FY24, respectively. Any decline in customer continuity, loss of recurring customers, or inability to maintain repeat business could adversely affect the company's revenue growth and profitability.
- • The company derives a substantial portion of its revenue from a limited number of customers. The top 10 customers contributed Rs 336.57 crore (40.87%), Rs 323.47 crore (43.91%), and Rs 289.00 crore (44.16%) of revenue from operations in FY26, FY25, and FY24, respectively. Failure to retain these key customers, expand the customer base, or loss of business from these customers could adversely affect the company’s business and financial performance.
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