Knack Packaging IPO: Draft Filed with SEBI for ₹475 Crore Fresh Issue

Knack Packaging, a key player in packaging solutions, has filed its Draft Red Herring Prospectus (DRHP) with SEBI to raise ₹475 crore through a fresh issue as part of its Initial Public Offering (IPO). The funds are aimed at supporting its capacity expansion and corporate requirements.

₹475 Crore Fresh Issue to Fund Expansion Plans

Of the ₹475 crore fresh issue, nearly ₹435 crore will be used for establishing a new manufacturing plant at Borisana, Kadi in Mehsana, Gujarat. The remaining ₹40 crore will go towards general corporate purposes. This signals Knack Packaging's trajectory towards enhancing production capabilities and diversifying operations.

Offer for Sale and Market Presence

In addition to the fresh issue, the IPO also includes an Offer for Sale (OFS) of 70,00,000 equity shares by promoters and an existing shareholder. Headquartered in Ahmedabad, Knack Packaging holds approximately 10% market share in India’s flexible bulk PLWPP (Printed and Laminated Woven Polypropylene) bags segment in FY25. Its product portfolio services industries such as food, pet food, and agro-commodities.

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Packaging Market Outlook

The Indian flexible plastic packaging market, as per a Technopak Report, is forecasted to grow from ₹1,85,000 crore in FY24 to ₹2,72,000 crore in FY29, registering an 8% CAGR. Within this, the WPP packaging segment is expected to increase from ₹45,000 crore to ₹70,000 crore at a CAGR of 9.2%. Furthermore, the Printed & Laminated WPP bulk bags sub-segment is expected to double from ₹2,500 crore to ₹5,000 crore, growing at a 15% CAGR, emphasising the robust prospects for players like Knack Packaging.

Stock Exchange Listing and Lead Managers

The shares of Knack Packaging will be listed on both the NSE and BSE. The IPO is being managed by Systematix Corporate Services, IDBI Capital Markets & Securities, and Pantomath Capital Advisors.

Conclusion

Knack Packaging’s IPO filing and planned fund utilisation demonstrate its strategic push towards expansion and deeper market penetration. The robust forecast for the packaging industry further strengthens the company’s direction and long-term growth potential.

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