Knack Packaging makes strong debut; shares soar up to 13%, beat street estimates

Shares of packaging solutions provider Knack Packaging made a strong debut on the stock exchanges on Wednesday, delivering listing gains of around 10% despite weakness in the broader market.

The stock listed at ₹188 on the NSE, a 10.59% premium over its IPO issue price of ₹170 per share. On the BSE, it debuted at ₹186, up 9.41% from the issue price.

After listing, the stock traded at ₹188.10, up 10.65%, with a market capitalisation of ₹2,301 crore. During the session so far, the stock touched an intraday high of ₹192, rising up to 13% against its IPO price.

Listing beats estimates

The debut of Knack Packaging was better than Street expectations. Ahead of listing, the stock was commanding a grey market premium (GMP) of around ₹13, indicating an expected listing gain of 7.65%.

"Our post-listing view remains positive. Investors who received allotment can continue to hold the stock for further upside while maintaining a stop-loss at ₹175 to manage downside risk. Fresh investors may consider accumulating the stock on dips after assessing the company's upcoming quarterly performance," said Shivani Nyati, Head of Wealth at Swastika Investmart.

Nyati said the company is backed by strong fundamentals, including healthy revenue growth, improving profitability, robust operating margins, and healthy return ratios (ROE and ROCE). Its reasonable valuation and fully integrated manufacturing capabilities provide a competitive edge.

"However, investors should closely monitor customer concentration risk and the execution of the company's new manufacturing facility, which will be key to sustaining future growth," she added.

IPO subscribed 83.33 times

The ₹439.50-crore IPO, which was open for subscription from July 1 to July 3, received an overwhelming response, with the issue being subscribed 83.33 times. The retail portion was subscribed 20.07 times, while the qualified institutional buyers (QIB) and non-institutional investor (NII) categories were subscribed 154.34 times and 139.81 times, respectively.

The public issue comprised a fresh issue of 2.24 crore shares worth ₹380.03 crore and an offer for sale (OFS) of 0.35 crore shares aggregating ₹59.47 crore.

Ahead of the IPO, the Ahmedabad-based company raised ₹131.25 crore from anchor investors, including domestic mutual funds, insurance companies, alternative investment funds (AIFs), and foreign institutional investors. It allotted 77.2 lakh equity shares at ₹170 apiece, the upper end of the price band.

Founded 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, serving industries such as food, pet food, agriculture, fertilisers, cement, chemicals, detergents, and building materials.

According to its draft red herring prospectus (DRHP), Knack Packaging held an estimated 10.1% share of India's flexible bulk PLWPP bag market in FY25.

The company serves more than 1,950 customers across 68 countries. Its domestic clients include Baba Agro Food, Drools Pet Food, Ebro India, KRBL, and DCM Shriram, while its international customer base includes Cargill, Cristo S.A., and Repi Soap and Detergent PLC.

Exports remain a key growth driver, with the United States, Mexico, and South Africa accounting for 35.19% of the company's export revenue. As of May 31, 2026, Knack Packaging 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 network.

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