Packaging Leader Knack Packaging Files for Major IPO to Fund ₹435 Crore Expansion
Integrated packaging solutions provider Knack Packaging Ltd. has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to launch a major Initial Public Offering. The IPO aims to raise ₹475 crores in fresh capital primary to fund a new manufacturing facility, signaling a significant expansion phase for the rapidly growing company. This public offering will provide investors with a new opportunity to engage with India’s burgeoning B2B packaging and export sector.
Company Background
Incorporated in 2013, Knack Packaging has established itself as a key player in the packaging industry, with a focus on innovation and sustainability. The company manufacturers a wide range of Printed and Laminated Woven Polypropylene (PLWPP) bags used across diverse sectors, including food, pet food, agriculture, cement, and chemicals. With an estimated 10.1% share of the Indian flexible bulk PLWPP bag market in Fiscal 2025, Knack serves a blue-chip clientele of leading Indian and global brands like KRBL Limited, DCM Shriram, and Cargill. The company has a strong export footprint, serving over 1,900 customers in 68 countries, and has an impressive financial performance, with a 61% increase in profit after tax in the last fiscal year.
IPO Details
The proposed IPO is a book-built issue comprising a fresh issue of shares aggregating up to ₹475 crores And an Offer for Sale (OFS) of up to 7,000,000 equity shares by its promoter group. The primary objective for the fresh capital is clear: ₹435 crores Are marked for capital expansion to set up a new manufacturing facility in Gujarat. The reminder will be used for general corporate purposes. The company intends for its shares to be listed on both the BSE and the NSE. The book-running lead managers for the issue include Systematix Corporate Services, IDBI Capital Markets, and Pantomath Capital Advisors.
Market Context & Opportunities
Knack Packaging’s market debut comes at a time when the packaging industry is serving as a critical backbone to India’s growing economy. The demand for high-quality, durable, and branded packaging solutions is surging, driven by increased consumption, a focus on brand visibility, and the expansion of organized retail. With a strong presence in the export market, Knack is also well-positioned to benefit from global supply chain diversification trends. The new manufacturing facility funded by the IPO will be crucial in scaling up capacity to meet this rising domestic and international demand.
Risks & Challenges
Despite its strong growth trajectory and impressive profitability metrics like a 41.7% Return on Equity (ROE), the company faces several industry-specific risks. The business is heavy dependent on the price of raw materials, primary polypropylene granules, which are derivatives of crude oil and subject to significant price volatility. The packaging industry is also highly competitive, with numerous organized and unorganized players. Furthermore, the successful execution and timely commissioning of its large-scale expansion project will be critical to realizing the full benefits of the capital raised.
Closing Paragraph
Knack Packaging’s IPO offers a computing story of a profitable, export-oriented company with a clear vision for growth in a fundamental vital sector. The offering provides a direct investment into a business that is a proxy for broad industrial and consumer activity. The central question for investors will be whether the company can effectively reject the fresh capital to scale its operations while navigating the inherent risks of raw material price volatility and a competitive market. This market debut is a pivotal moment that will determine if Knack can cement its leadership position and become a major force in the global packaging industry.
