Knack Packaging files draft papers with Sebi for IPO, aims to raise ₹475 cr

Packaging solutions provider Knack Packaging has filed draft papers with Sebi to raise funds through an Initial Public Offering (IPO) to support its expansion plans.

The issue comprises a fresh equity issue of ₹475 crore and an Offer for Sale (OFS) of 70 lakh equity shares by promoters and an existing shareholder, according to the Draft Red Herring Prospectus (DRHP) filed on Thursday.

Of the fresh issue, about ₹435 crore will be utilised for setting up a new manufacturing facility at Borisana, Kadi in Mehsana, Gujarat, while the balance will be earmarked for general corporate purposes.

Headquartered in Ahmedabad, Knack Packaging is a leading integrated, innovation-driven, export-oriented packaging solutions provider. Its portfolio includes Printed and Laminated Woven Polypropylene (PLWPP) bags and PLWPP pinch bottom bags, catering to diverse sectors such as food products and pet foods.

The company commands nearly 10 per cent market share in India's flexible bulk PLWPP bags segment in FY25, according to Technopak Report.

India's flexible plastic packaging market is projected to grow from Rs 1.85 lakh crore in FY24 to Rs 2.72 lakh crore in FY29 indicating a 8 per cent Compound Annual Growth Rate (CAGR).

Within this, the Woven Polypropylene (WPP) packaging market is expected to expand from Rs 45,000 crore to Rs 70,000 crore (9.2 per cent CAGR), while the Printed & Laminated WPP bulk bags segment is projected to double from Rs 2,500 crore to Rs 5,000 crore (15 per cent CAGR), as per Technopak Report.

Systematix Corporate Services, IDBI Capital Markets & Securities, and Pantomath Capital Advisors are the lead managers to the IPO. The company's shares will be listed on the NSE and BSE.