Investor sentiment remains positive as Knack Packaging's IPO has been subscribed 8.34 times as of Day 3, 10:05 AM, indicating robust interest from various investor categories. The IPO, which includes a fresh issue of Rs 380 crore and an offer for sale of Rs 59.5 crore, is trading at a 17% premium in the grey market, suggesting potential listing gains.
Retail Individual Investors (RIIs) have subscribed 4.63 times for their allotted 94.42 lakh shares, reflecting steady retail participation. Non-Institutional Investors (NIIs) have shown strong demand, with subscriptions reaching 23.53 times against 40.46 lakh shares. Qualified Institutional Buyers (QIBs) have subscribed 3.48 times for 40.46 lakh shares.
The IPO price band is set at Rs 161-170 per share, with a minimum application size of 88 shares. Knack Packaging is scheduled to list on both the BSE and NSE on July 8. The company plans to use the proceeds from the fresh issue primarily for constructing a new manufacturing facility in Gujarat, with Rs 320 crore earmarked for capital expenditure.
Knack Packaging, a manufacturer of Printed and Laminated Woven Polypropylene bags, exports to 71 countries and serves over 1,950 customers globally. The company reported revenue of Rs 823.4 crore for FY26, with a net profit of Rs 92.8 crore.
Brokerages like Choice Broking and Anand Rathi have given a 'Subscribe for Long Term' rating, citing the company's strong market position and growth potential. However, they also noted risks such as global economic slowdowns and competitive pressures.
Background
Knack Packaging operates in a competitive industry with a significant export presence, serving a diverse global clientele. The company's integrated manufacturing model and consistent financial performance have positioned it well in the market.
As Knack Packaging prepares for its listing, investors will be keenly watching the market sentiment and the company's performance post-listing, especially given its plans for capacity expansion and international growth.
