Knack Packaging’s ₹439.5-crore IPO opens for public subscription today with a price band of ₹161-170. The company has already secured ₹131.25 crore from anchor investors, signaling institutional interest in its specialized packaging business.
What Happened
Knack Packaging, an Ahmedabad-based manufacturer of printed and laminated woven polypropylene (PLWPP) bags, has opened its initial public offering (IPO) for public subscription today. The company aims to raise a total of ₹439.50 crore through this issue, which will remain open until July 3.
Ahead of the public opening, the company successfully raised ₹131.25 crore from anchor investors. This anchor portion was priced at ₹170 per share, which is the upper limit of the IPO’s price band (₹161-170 per share).
Understanding the Anchor Response
The anchor investor book saw participation from a mix of domestic mutual funds, insurance companies, and foreign institutional investors. Axis Opportunities AIF - Series II was a key participant, contributing ₹40 crore. Other notable investors included SBI General Insurance Company Limited, Bandhan Small Cap Fund, and several other asset management firms. This early institutional support is often viewed by the market as a sign of confidence in the company’s business model and financial health before the general public gets involved.
Financial and Business Snapshot
Knack Packaging operates in the specialized packaging sector, providing solutions for industries like food processing, pet food, agriculture, and chemicals. The company has a significant footprint, serving over 1,950 customers across 68 countries. Some of its notable domestic clients include names like Baba Agro Food, Drools Pet Food, KRBL, and DCM Shriram.
Financially, the company reported an income of ₹843.77 crore for FY26, marking a 13% increase from the previous year. Profit after tax (PAT) for the same period stood at ₹92.72 crore, which is a 26% growth year-on-year. The company had total assets valued at ₹595.25 crore as of March 31, 2026.
Key Business Risks to Consider
Investors looking at this IPO should understand the risks inherent in this business model. First, the company relies heavily on the supply of raw materials like polypropylene. These materials are derivatives of crude oil, meaning their prices can be volatile. Any significant rise in raw material costs can pressure profit margins if the company is unable to pass these costs on to its customers.
Second, because the company has a strong export focus—sending products to the US, Mexico, and South Africa—it is exposed to global demand fluctuations and currency risks. A slowdown in international markets or unfavorable exchange rate movements could affect its revenue.
Finally, the packaging industry is highly competitive with low barriers to entry. While the company claims an estimated 10.1% market share in the Indian flexible bulk PLWPP bag sector for FY25, maintaining this share requires constant innovation and cost efficiency, especially as it competes with both large and unorganized players.
What Investors Should Track Next
The IPO is scheduled to finalize the basis of allotment on July 6, followed by the listing of shares on the BSE and NSE on July 8. Beyond these dates, investors will likely track how effectively the company uses the fresh funds from the IPO to expand its operations and whether it can maintain its profit growth trajectory in a competitive market environment.