Knack Packaging IPO Sees Strong Demand as Investors Wait for Allotment
The Knack Packaging IPO has gained strong attention from investors while the public offering is in its subscription window. The mainboard IPO of ₹ 439.50 crore will be offered for bidding from July 1, 2026 to July 3, 2026. The price band has been defined at ₹161 to ₹170 per share with a lot size of 88 shares, making the minimum retail investment ₹14,960. With the grey market activity healthy and consistent bidding across investor categories, the focus has now switched to the allotment schedule and listing expectations.
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The allotment for the Knack Packaging IPO is likely to be concluded on July 6, 2026. Refunds and share credits are set for July 7, 2026 and the business is likely to debut on the BSE and NSE on July 8. Once the basis of allotment is determined, the investors applying for the issue can monitor their allotted status on the registrar or stock market platforms.
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The problem is a combination of new shares of equity and an offer for sale. The fresh issue is valued at ₹380 crore and the offer for sale at ₹59.50 crore. In total, the company is issuing 2,58,52,941 shares having a face value of ₹10 each. The IPO is following the book building approach and has been positioned as a mainboard offering, which means the shares are planned to be listed on both major markets. The investor allocation has been split between qualified institutional buyers, non-institutional investors and retail investors. Market trackers say there has been increased early demand from the institutional and non-institutional categories, although retail involvement is still to pick up during the bidding period.
Subscription Status
We have had a good start to the sale with good buying interest in the key segments. On July 1, 2026, the IPO was subscribed 0.93 times in total, 1.10 times by qualified institutional purchasers and 1.54 times by non-institutional investors. The retail portion stood at 0.56 times, showing that retail applications were still coming as the issue was still open. Figures show demand is not confined to one class of investor. On market mood, a positive response from the QIB and NII categories is a good start but the final picture would only be evident once the offer ends. The last day saw a major swing in the IPO subscription figures as many investors wait till the end of the bidding window to apply.
Premiums on Grey Market
Grey market has also helped the issue stay alive. On July 1, the shares of Knack Packaging were selling at a premium of roughly ₹25-26 at the upper price band of ₹170. It meant an expected listing price of close to ₹195, or a prospective upside of roughly 15%, based on grey market trackers. However, investors need to be careful about the grey market premium. GMP is unofficial and does not assure gains on the day of listing. It is just a reflection of the market attitude before listing and can change very quickly depending on the broader market conditions, subscription trends and hunger among the investors.
Who We Are
Knack Packaging is a packaging solutions firm that produces specialised flexible packaging products. It manufactures printed and laminated woven polypropylene bags, pinch bottom bags, BOPP laminated bags, woven fabrics, HDPE and PP tapes and other packaging items according to customers specifications. The company has consumers in India and also in international markets. Its packaging products are employed in many areas including food, agriculture, pet food, fertilisers, chemicals, cement, building materials and industrial items. The vast customer base means the company is exposed to both consumer-related and industrial demand.
Earnings Results
The company has shown consistent growth in recent years. Total income in FY26 stood at ₹843.77 crore against ₹747.38 crore in FY25 and ₹659.01 crore in FY24. Profit after tax increased to ₹92.72 crore in FY26 from ₹73.81 crore in FY25 and ₹45.97 crore in FY24. EBITDA also grew to ₹172.29 crore in FY26 as compared to ₹144.34 crore in FY25. The figures provide an indication of the company’s growth in terms of both revenues and profitability. The IPO has been attracting market participants due to the growth in margins and earnings. Still, investors will be watching to see whether this performance can be sustained after listing, particularly as the company ramps up capacity.
Proceeds Use:
The company will utilise the proceeds from the IPO to fund a large part of its expansion strategy. Knack Packaging to invest ₹320 crore as part of capital investment for new manufacturing unit at Borisana, Kadi, Mehsana, Gujarat. The remaining proceeds will be used for general company purposes. This anchors the IPO firmly to future capacity expansion. If the new plant is completed and ramped up without a problem, the company may have the capacity to satisfy additional demand and increase its position in the flexible packaging market. At the same time, timescales, costs and demand conditions of execution will remain important variables to watch.
What to watch for investors?
Now the attention is on the final subscription figures, the allotment date and the listing-day performance. Until now, strong demand from QIB & NII investors have sustained sentiment and the grey market premium has kept expectations firm. But gains are not a given in the listings. Investors should evaluate the company’s financial growth, its expansion ambitions, value and the dangers associated with the industry before making a decision. Knack Packaging has entered market with apparent demand but real test will begin after allotment and listing when stock starts trading on the exchanges.
