IPO closes on 3 Jul'26
Knack Packaging Ltd
Minimum Investment
₹ 14,960 / 88 shares
Our Verdict:
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Strong Niche Packaging Player with Global Reach
- Knack Packaging has established itself as a leading player in the flexible bulk packaging segment with ~10% market share in India and a strong export presence across 71 countries. Its diversified customer base, integrated manufacturing operations, and focus on value-added laminated and printed products provide a solid foundation for sustainable growth and margin expansion.
- Additionally, the Sayem–Knack Mexico JV is a key strategic step in the company's global expansion. The partnership provides a local presence in Mexico and access to the North American market, improving customer reach, reducing logistics costs, and enhancing supply-chain efficiency. By combining Knack's manufacturing expertise with local market access, the JV can diversify revenues, strengthen export competitiveness, and support long-term growth across North and Latin America.
- The company has demonstrated strong execution, delivering Revenue/EBITDA/PAT CAGR of 12%/25%/43% over FY24–26. The recent commissioning of Unit-4, healthy capacity utilization of over 80%, and increasing contribution from higher-margin products are expected to support the next phase of growth.
- At the IPO price, Knack Packaging offers exposure to a scalable manufacturing business with strong return ratios, growing exports, and visible growth drivers. Given its integrated business model, improving product mix, expanding capacity, and long-term growth opportunities in industrial and food packaging, we recommend SUBSCRIBE to the IPO for investors with a medium to long-term investment horizon.
About the company
Founded in
4 Mar'13
Managing director
Alpesh Tulsibhai Patel
- Knack Packaging Ltd. (KPL) is a leading manufacturer of Printed and Laminated Woven Polypropylene (PLWPP) bags, serving diverse end markets including food, fertilizers, chemicals, cement, pet food, and industrial packaging. The company operates four integrated manufacturing facilities in Gujarat, offering end-to-end capabilities from extrusion and weaving to lamination and advanced printing.
- KPL has built a strong global footprint with over 1,950 customers across 71 countries, supported by a diversified portfolio of 13,379 SKUs and more than 73,000 printing cylinders. Exports contribute a significant share of revenue, while its focus on value-added laminated and printed products supports higher realizations and customer stickiness.
STRENGTHS
- Strong Market Position & Diversified End Markets: Knack Packaging is a leading player in the PLWPP bags segment with ~10% market share in India. Its presence across food, fertilizers, chemicals, cement, and pet food sectors provides diversified revenue streams and demand visibility.
- Integrated Manufacturing Advantage: The company operates four integrated facilities with end-to-end capabilities from extrusion to advanced printing. This enables better quality control, cost efficiencies, and faster execution of customized orders, supporting margin expansion.
- Robust Export Franchise & Mexico JV: Exports contribute over 56% of revenue, with products supplied to 71 countries and 1,950+ customers globally. The Mexico JV strengthens its presence in North America and provides a platform for future international growth.
- Strong Financial Performance: Knack Packaging has delivered Revenue/EBITDA/PAT CAGR of 12%/25%/43% over FY24–26. Healthy capacity utilization, improving product mix, strong margins, and robust return ratios provide visibility for sustainable earnings growth.
RISK FACTORS
- Supplier Concentration Risk: The company relies on a limited number of suppliers for key raw materials, with the top five suppliers accounting for approximately 73% of total raw material procurement in FY26. Any disruption in supply, pricing changes, or deterioration in supplier relationships could impact production continuity and operational efficiency.
- Customer Concentration Risk: A meaningful portion of revenue is generated from a concentrated customer base, with the top five customers contributing around 33% of FY26 revenue. The absence of long-term contracts increases the risk of revenue volatility in the event of order reductions or customer attrition.
- Exposure to Raw Material Price Fluctuations: The company's primary raw materials, including polypropylene granules, BOPP films, and LDPE granules, are linked to crude oil prices. Significant volatility in crude oil and petrochemical markets may affect input costs and exert pressure on margins.
- Capacity Expansion Execution Risk: Future growth is partly dependent on the successful ramp-up of the new Borisana facility in Gujarat. Any delays in commissioning, cost overruns, or slower-than-expected capacity utilization could impact profitability, return ratios, and growth expectations.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 439 crore
Fresh Issue
₹ 380 crore
OFS
₹ 59 crore
Price range
₹ 161 - 170
Lot size
88 shares
Issue Objective
- The net proceeds from the fresh issue will be utilized towards: Fresh Issue (₹380 Cr): Partial funding of capex for setting up a new manufacturing facility at Borisana, Kadi, Mehsana, Gujarat (Project Site — Survey No. NA/509/P2) → ₹320 Cr. General Corporate Purposes (capped at 25% of Gross Proceeds).
Dates
Bidding open
1 Jul'26
Bidding close
3 Jul'26
Allotment date
6 Jul'26
Refund date
7 Jul'26
Listing
8 Jul'26
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2026 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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