Knack Packaging IPO Sees Strong Final-Day Demand as GMP Signals Healthy Listing Buzz

Knack Packaging’s ₹439.5 crore IPO witnessed strong investor interest on the third and final day of bidding, with the issue subscribed 8.34 times by late morning, led mainly by robust demand from non-institutional investors. The IPO received bids against 1.89 crore shares on offer, while the retail investor portion was booked 4.63 times, showing steady participation from individual investors. The non-institutional investor category saw the strongest response with 23.53 times subscription, while qualified institutional buyers subscribed 3.48 times, indicating moderate but visible institutional interest. The company has fixed a price band of ₹161 to ₹170 per share, with a minimum application size of 88 shares. The issue includes a fresh issue of ₹380 crore and an offer for sale of up to ₹59.5 crore by existing shareholders. Grey market sentiment also remained positive, with Knack Packaging shares trading at a premium of around 17% over the upper end of the price band, suggesting a possible listing near ₹198 if current trends continue. The company plans to use most of the fresh issue proceeds for building a new manufacturing facility at Borisana in Gujarat, with around ₹320 crore earmarked for capital expenditure, while the remaining funds will be used for general corporate purposes. Knack Packaging manufactures printed and laminated woven polypropylene bags used across food grains, sugar, pet food, fertilisers, chemicals, cement and construction materials, and serves customers across India and overseas markets. The company exports to 71 countries, serves more than 1,950 customers globally and holds an estimated 10.1% share in India’s flexible bulk PLWPP bags segment. Brokerages such as Choice Broking and Anand Rathi have recommended subscribing for the long term, citing the company’s integrated operations, export presence, capacity expansion plans and financial performance. However, investors should also consider risks such as customer concentration, currency fluctuation, global slowdown, competition and the fact that grey market premium is unofficial and can change quickly before listing.