Knack Packaging raises ₹131 crore from anchor investors ahead of ₹440 crore IPO; GMP up 15%
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Knack Packaging has raised ₹131.25 crore from anchor investors ahead of the opening of its ₹439.50-crore initial public offering (IPO) today. The anchor book saw participation from domestic mutual funds, insurance companies, alternative investment funds (AIFs) and foreign institutional investors.
The Ahmedabad-based company, which manufactures printed and laminated woven polypropylene (PLWPP) bags, allotted 77,20,587 equity shares to anchor investors at ₹170 apiece, the upper end of the IPO price band, according to the anchor allocation details.
Axis Opportunities AIF - Series II emerged as the largest anchor investor, receiving 23,52,944 equity shares, representing 30.48% of the anchor book, for an investment of ₹40 crore.
Other prominent anchor investors included Ashoka India Equity Investment Trust Plc., SBI General Insurance Company Limited and Bandhan Small Cap Fund, which together received allocations worth ₹39.24 crore.
The anchor book also saw participation from Bank of India Mutual Fund (through its Manufacturing & Infrastructure, Mid Cap and Consumption Funds), ITI Mutual Fund (through its Multi Cap and Flexi Cap Funds), Sundaram Alternative Opportunities Fund – ALTAS, Alchemy Long Term Ventures Fund – Series 2, Gagandeep Credit Capital Pvt. Ltd., AIONIOS Alpha Fund I, and JM Financial Mutual Fund – JM Small Cap Fund. Together, these investors received allocations aggregating ₹52.01 crore.
GMP rises to 15% ahead of opening of IPO
The healthy anchor response comes ahead of the public issue, which will close on July 3. The basis of allotment is expected to be finalised on July 6, while the company's shares are scheduled to list on the BSE and NSE on July 8.
Ahead of the IPO opening, Knack Packaging has generated interest in the grey market. The shares were commanding a grey market premium (GMP) of ₹26, or 15.29%, indicating an estimated listing price of around ₹196 per share, according to data from InvestorGain.
The grey market premium refers to the price at which IPO shares trade in the unofficial and unregulated grey market before listing. It is indicative in nature and subject to sharp fluctuations depending on market conditions and investor sentiment.
Looks to raise ₹440 crore via IPO
Knack Packaging aims to raise ₹439.50 crore through its IPO, comprising a fresh issue of 2.24 crore equity shares worth ₹380 crore and an offer for sale (OFS) of 35 lakh equity shares aggregating ₹59.50 crore by existing shareholders.
The price band has been fixed at ₹161-170 per share. Retail investors can apply for a minimum of 88 shares, requiring an investment of ₹14,960 at the upper end of the price band.
As per the issue structure, up to 50% of the net offer has been reserved for qualified institutional buyers (QIBs), at least 35% for retail investors, and at least 15% for non-institutional investors (NIIs).
Incorporated in 2013, Knack Packaging is an integrated packaging solutions provider focused on innovation, exports and sustainability. The company manufactures printed and laminated woven polypropylene (PLWPP) bags, including pinch-bottom, gusset, block-bottom and retail shopping bags, catering to industries such as food, pet food, agriculture, fertilizers, cement, chemicals, detergents and building materials.
According to its draft red herring prospectus (DRHP) filed with Sebi, the company held an estimated 10.1% share of India's flexible bulk PLWPP bag market in FY25.
Knack Packaging serves more than 1,950 customers across 68 countries. Its domestic clientele includes Baba Agro Food Limited, Drools Pet Food Private Limited, Ebro India Private Limited, KRBL Limited and DCM Shriram Limited, while its global customer base includes Cargill, Cristo S.A. and Repi Soap and Detergent PLC.
Exports account for a significant share of the company's business, with the United States, Mexico and South Africa together contributing 35.19% of its total export revenue.
As of May 31, 2026, the company had developed more than 73,000 printing cylinders, managed 13,379 stock-keeping units (SKUs), and operated a 92,065-square-foot warehouse to support its manufacturing and distribution operations.
On the financial front, Knack Packaging reported a 13% year-on-year increase in total income to ₹843.77 crore in FY26 from ₹747.38 crore in FY25. Profit after tax (PAT) rose 26% to ₹92.72 crore from ₹73.81 crore, while EBITDA increased to ₹172.29 crore from ₹144.34 crore.
As of March 31, 2026, total assets stood at ₹595.25 crore as compared with ₹449.36 crore a year earlier.
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