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Knack Packaging filed draft IPO documents with SEBI for a fresh issue and offer for sale
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The IPO includes Rs 475 crore fresh issue and sale of up to 70 lakh shares by promoters
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Funds will mainly support a new manufacturing plant in Borisana, Gujarat, costing Rs 435 crore
Knack Packaging Ltd. on Friday filed draft offer documents with the market regulator to sell shares via an initial public offering. The IPO contains a fresh issue of Rs 475 crore and an offer for sale of up to 70 lakh shares by ten promoters.
The face value of the equity shares is Rs 10 each.
The net proceeds of the fresh issue will be utilised for capital expenditure towards setting up of new manufacturing facility in Borisana, situated at Mehsana, Gujarat. This amounts to Rs 435 crore.
The plant will manufacture printed and laminated woven polypropylene bags and PLWPP pinch bottom bags, as per the DRHP. It will enable the company to meet rising domestic and export market demand for woven fabrics, bags, and multicoloured printed PLWPP bags.
The rest of the funds will be used for general corporate purposes.
Details regarding IPO price band, bidding period, etc., will be announced after the SEBI approves the offer.
Ahmedabad-based Knack Packaging offers a diverse range of packaging solutions. Its current manufacturing facilities provides an aggregate effective installed capacity of 36,400 MT, with capacity utilisation at 85.98% during the fiscal 2025, indicating limited room for scaling output without infrastructure enhancement.
A manufacturing plant (Image source: Knack Packaging YouTube video screengrab)
A manufacturing plant (Image source: Knack Packaging YouTube video screengrab)
The company holds approximately 10% share in the Indian market for flexible bulk PLWPP bags, including PLWPP pinch bottom bags in FY25, as per a Technopak report.
Knack Packaging supplies top brands under a B2B2C model, including household Indian names such as Baba Agro Food, Drools Pet Food, Ebro India, Laxmi Protein Products, KRBL, and DCM Shriram, as well as international brands across 68 countries like Cristo S.A., Cargill and Repi Soap and Detergent PLC.
The key industries it supplies the bags include grains and pulses – rice, dal, lentils, etc., flour & spices, sugar, salts, fruits & nuts, animal & pet foods, agriculture, seeds, charcoal, detergents powders and granules, fertilizers, chemicals, cement, tile adhesives, building materials, mineral bags etc.
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