Knack Packaging Limited

Knack Packaging Limited was incorporated in 2013 and operates vertically integrated manufacturing facilities in Gujarat covering approximately 1.12 million sq. ft., with aggregate installed capacity of 43,300 MTPA at 81.6% utilisation in FY26.

The company manufactures PLWPP pinch bottom, gusset, block bottom and retail shopping bags and is the first in India and Asia to introduce laser-cut easy-open features in PLWPP pinch bottom bags. It serves over 1,950 customers across 68 countries including Cargill, KRBL, Drools Pet Food, Ebro India and DCM Shriram, with exports contributing 56.3% of revenue. The company has developed over 73,000 printing cylinders and 13,000+ SKUs. As of March 31, 2026, the company had 1,834 employees. Promoters Alpesh Tulsibhai Patel, Pravinkumar Ambalal Patel and Rashminbhai Tulsibhai Patel hold 89.60% pre-IPO stake, reducing to 70.59% post-IPO.

The issue comprises a fresh issue of ₹380.21 Cr and an OFS of ₹59.50 Cr at a price band of ₹161 to ₹170 per share with an employee discount of ₹16 per share, implying a post-issue market cap of ₹2,080.21 Cr, listing on both BSE and NSE mainboard on July 8, 2026.

Proceeds will primarily fund ₹320 Cr toward a new greenfield manufacturing facility at Borisana, Kadi, Mehsana, Gujarat (total capex ₹435 Cr, with the balance funded through internal accruals or debt). At the upper band, the IPO is valued at a post-issue P/E of 22.43x FY26 earnings, broadly in line with TCPL Packaging (28.19x) and at a discount to Mold-tek Packaging (31.83x). Key strengths include consistent revenue growth from ₹518 Cr to ₹823 Cr over FY23–26, PAT margins expanding from 3.83% to 11.26%, best-in-class RoNW of 35.47%, declining D/E from 1.29 to 0.62 and first-mover advantage in laser-cut PLWPP technology; key risks include polypropylene raw material price volatility, export concentration in US/Mexico/South Africa (35.19% of exports), customer concentration risk and capital-intensive greenfield expansion.