Knack Packaging sets IPO price band at ₹161-₹170 as it eyes capacity expansion

The Gujarat-based packaging firm is set to debut on the bourses this July, aiming to raise ₹440 crore to fuel its new manufacturing ambitions.

The packaging sector is heating up as Knack Packaging prepares to hit the market with its ₹440 crore initial public offering (IPO). The company, promoted by the Patel family, has officially set its price band between ₹161 and ₹170 per share, marking the first major mainboard listing of July. Investors looking to participate in the offering can place their bids when the window opens on July 1, with the subscription period slated to close on July 3.

At the upper end of the price band, the company is valued at approximately ₹2,080 crore. The total issue size of ₹439.5 crore is a mix of a fresh issue of equity shares worth ₹380 crore and an offer-for-sale (OFS) by promoters valued at ₹59.5 crore. The company has made provisions for its workforce as well, reserving shares worth ₹2 crore for employees, who will receive a discount of ₹16 on the final issue price.

Expansion and Market Strategy

The primary intent behind this capital raise is clear: scale. The firm plans to divert ₹320 crore from the fresh issue proceeds toward building a new manufacturing facility in Borisana, Gujarat. This plant is designed to bolster production capacity for printed and laminated woven polypropylene (PLWPP) bags and specialized pinch-bottom bags, catering to a client base that includes players in the animal nutrition, food, and pet food industries.

With the company reporting a profit of ₹92.7 crore in the 2026 financial year—a notable 25.6% jump from the previous year—it is clear that Knack Packaging is focusing on efficiency. Revenue growth stood at 11.8%, hitting ₹823.4 crore, suggesting that the company’s current product mix is yielding better margins than in previous cycles.

The Bigger Picture

For investors, the Knack Packaging IPO serves as a litmus test for the industrial packaging segment. While the firm’s steady growth and client list—featuring names like Drools Pet Food and DCM Shriram—offer a layer of confidence, the company is not immune to broader market realities. Because their core product is a derivative of crude oil, the business remains tethered to the volatility of raw material prices. Success will likely hinge on whether they can execute their Gujarat project on schedule and maintain the demand necessary to absorb their expanded production capacity.

Key Dates and Allotment

The administrative clock is already ticking: anchor investors are scheduled to get their allocation on June 30. For the broader market, once the subscription window shuts on July 3, the registrar will finalize the basis of allotment by July 6. Refunds and demat credits are expected by July 7, with the company’s highly anticipated debut on the BSE and NSE penciled in for July 8. Retail investors should note the minimum lot size is 88 shares, requiring an investment of ₹14,960 at the upper price band.