Knack Packaging IPO shares to debut today. Here’s what GMP suggests ahead of listing

Ahead of the listing, the grey market indicates a positive debut. The IPO is currently commanding a Grey Market Premium (GMP) of around Rs 16 per share, suggesting an estimated listing price of Rs 186, about 10% higher than the upper end of the IPO price band of Rs 170.

The IPO, which was open for subscription from July 1 to July 3, was subscribed 83.33 times, reflecting strong investor confidence across categories.

Qualified Institutional Buyers (QIBs) emerged as the biggest contributors, subscribing their reserved portion 154.34 times. Non-Institutional Investors (NIIs) followed with 139.81 times subscription, while the retail investor segment was subscribed 20.07 times.

The public issue comprised a fresh issue of Rs 380 crore and an offer for sale (OFS) of Rs 59.5 crore by existing shareholders. The price band was fixed at Rs 161-170 per share, with investors required to apply for a minimum of 88 shares.

Knack Packaging is an integrated packaging solutions provider specialising in printed and laminated woven polypropylene (PLWPP) bags, including pinch-bottom bags used across industries such as food grains, flour, sugar, pet food, fertilisers, chemicals, detergents, cement and construction materials.

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The company exports to 71 countries and serves a customer base of more than 1,950 clients globally. It holds an estimated 10.1% share of India’s flexible bulk PLWPP bags market and operates a fully integrated manufacturing model covering polypropylene processing, printing and bag conversion.

Its customer roster includes prominent Indian companies such as KRBL, Drools, DCM Shriram and Baba Agro Foods, while its international clientele includes Cargill and several other global brands.Knack Packaging plan to utilise the fresh issue proceeds primarily to set up a new manufacturing facility at Borisana, Gujarat. Around Rs 320 crore has been earmarked for capital expenditure, while the remaining funds will be deployed towards general corporate purposes.

On financial front, the company delivered healthy financial growth in FY26. Revenue from operations rose to Rs 823.4 crore from Rs 736.5 crore a year earlier. Net profit increased to Rs 92.8 crore, compared with Rs 73.8 crore in FY25. EBITDA improved to Rs 152 crore, while the EBITDA margin expanded to 18.5%, highlighting improved operational efficiency and profitability ahead of its stock market debut.

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