Ahead of the opening of the subscription window, SMIFS has recommended subscribing to the issue from a medium- to long-term perspective, saying Knack Packaging is well positioned to benefit from the structural growth in the specialised packaging industry. The brokerage noted that despite reporting the highest return on equity (ROE) and return on capital employed (ROCE) among its listed peers, the IPO is attractively valued.
“Considering its market leadership, strong competitive positioning, robust growth visibility, healthy return profile and attractive valuation, we recommend subscribing to the issue from a medium- to long-term investment perspective,” SMIFS said.
SBI Securities has also assigned a ‘Subscribe’ rating for the long term, citing the company’s market position, marquee client base, established international presence, expansion in value-added products, and robust return ratios.
The brokerage expects future growth to be driven by capacity expansion, the ramp-up of Unit 4, a higher share of value-added products, and export traction, while highlighting raw material price volatility and competitive intensity as key risks.
Anand Rathi Share and Stock Brokers has also recommended subscribing to the IPO for the long term, saying the company is well positioned to benefit from the structural growth in demand for flexible packaging, supported by its integrated operations, scale, and export presence.
On valuations, Anand Rathi said that based on FY26 earnings, the issue is priced at a price-to-earnings (P/E) multiple of 22.4 times, with a post-issue market capitalisation of around ₹2080 crore, making the issue appear fairly priced.
Meanwhile, grey market sentiment remained positive. According to sources tracking unofficial market activity, Knack Packaging’s unlisted shares were trading at around ₹193 apiece, indicating a grey market premium (GMP) of ₹23, or 13.53 per cent, over the upper end of the issue price of ₹170.
Knack Packaging IPO details
The IPO comprises a fresh issue of 2.24 crore equity shares aggregating to ₹380 crore and an offer for sale (OFS) of up to 35 lakh shares worth ₹59.50 crore by existing promoters.
The issue is priced in the band of ₹161-170 per share. Investors can bid for a minimum of 88 shares and in multiples thereafter. At the upper price band, a retail investor will need to invest ₹14,960 for one lot, while bidding for the maximum permissible 13 lots (1,144 shares) will require an investment of ₹1,94,480.
The public issue will close on July 3, 2026, while the basis of allotment is expected to be finalised on July 6. Shares of Knack Packaging are scheduled to list on the stock exchanges on July 8, 2026.
MUFG Intime India (formerly Link Intime India) is the registrar to the issue. Systematix Corporate Services, IDBI Capital Markets & Securities, and Pantomath Capital Advisors are the book-running lead managers.
According to the red herring prospectus (RHP), the company will not receive any proceeds from the offer for sale, with the proceeds going to the selling shareholders. The funds raised through the fresh issue will be used to partially finance the setting up of a new manufacturing facility at Borisana, Kadi, Mehsana, Gujarat, and for general corporate purposes.
About Knack Packaging
Knack Packaging is an integrated, innovation-driven, export-oriented packaging solutions provider engaged in the manufacturing of Printed and Laminated Woven Polypropylene (PLWPP) bags, including PLWPP pinch-bottom bags. The company supplies customised, high-strength packaging solutions across industries such as food grains, flour, sugar, pet food, agriculture, fertilisers, chemicals, detergents, cement, and construction materials.
