₹781.00 Cr
Total Issue Size
₹13,600 (80 shares)
1 Lot Cost (Min. Inv.)
₹2,808.40 Cr
Market Cap (At Upper Band)
₹234.30 Cr (30.0% of Issue)
Anchor Book Allocation
+₹9 ()
Grey Market Premium Updated 29 Aug 2026, 04:03 PM IST
Issue Structure & OFS vs Fresh Capital Split
| Offering Parameter / Tranche |
Allocation & Value |
% of Gross Issue |
Strategic Mandate / Terms |
| Fresh Issue (Primary Growth Capital) | Up to Rs 475.00cr (4,750.00 million). | 87.0% | Balance sheet equity expansion directly fueling capex, debt repayment & operations |
| Offer for Sale (OFS - Insiders) | Not finalized in DRHP (disclosed as [●] million), consisting of up to 7,000,000 Equity Shares. | 13.0% | Secondary liquidity realization for existing promoters & early institutional funds |
| Gross Total Issue Size | ₹781.00 Cr | 100.0% | Aggregate primary market capital raising at upper price band |
| Net Proceeds Reaching Company | Not finalized in DRHP. Equal to Fresh Issue (Rs 475.00cr) minus estimated Fresh-related issue expenses. | - | Net growth funds after deducting book building issue & underwriting expenses |
| Anchor Investor Allocation Tranche | ₹234.30 Cr (30.0% of Issue) | Up to 30.0% | Reserved anchor allotment tranche for institutional Qualified Institutional Buyers (QIBs) |
| Pre-IPO WACA Benchmark | Average cost of acquisition for existing shares: Alpesh Tulsibhai Patel: Rs 2.86, Pravinkumar Ambalal Patel: Rs 5.00, Rashminbhai Tulsibhai Patel: Rs 7.50 (adjusted for bonus). WACA of last 18 months transacted shares is Nil (gift transactions). | Weighted average cost of acquisition for promoters & early funds |
| Selling Shareholders & Dilution | Promoters (Alpesh: 1,351,500 shares; Rashminbhai: 1,351,500 shares), Promoter Group (Tulsibhai: 724,000; Kamlesh: 615,000; Dharmisthaben: 250,000; Shital: 596,500; Divyaben: 596,500; Jay: 340,000), Other Selling Shareholder (Shitalben: 575,000). |
| Intermediary / Regulatory Entity |
Entity Name / Details |
Statutory Function & Status |
| Book Running Lead Managers (BRLMs) |
SEBI Registered Merchant Bankers / BRLMs |
Issue pricing, underwriting, book building & institutional roadshows |
| Registrar to the Issue |
SEBI Category-I Registrar |
Allotment finalization, Demat share transfer & ASBA refund processing |
| Proposed Listing Exchanges |
NSE / BSE |
Trading segments, ticker assignment & continuous disclosure compliance |
| Regulatory Prospectus Stage |
DRHP / RHP Filed |
SEBI ICDR compliance review & exchange in-principle listing approval |
Revenue Breakdown, Product Mix & Customer Concentration
| Product / Operating Segment |
Share (%) |
Value / Channel |
Export Sales (BOPP & PP Woven Sacks) | 56.2% | ₹438.92 Cr |
Domestic Sales (PP/HDPE Sacks) | 43.8% | ₹342.08 Cr |
| Market Segment / Customer Concentration Tier |
Share (%) |
Reported Value |
Concentration & Risk Profile |
| International Export Sales (USA, LatAm, Europe) | 56.2% | ₹414.19 Cr | Global agrochemical & food brands |
| Domestic India Sales | 43.8% | ₹322.30 Cr | Domestic packaging clients |
| Top 1 Customer (Cargill Global) | 19.0% | ₹140.15 Cr | Key account >8 years |
| Top 5 Customers | 35.2% | ₹259.39 Cr | Diversified multinational base |
Capital Allocation (Where the Fresh Money Goes)
| Object of the Offer / Proposed Expenditure |
Amount (₹ Cr) |
% of Fresh Issue |
Deployment Timeline / Purpose |
| New Automated BOPP Packaging Plant Capex | ₹435.00 Cr | 75.0% | Ahmedabad capacity expansion |
| General Corporate Purposes (GCP) | ₹145.00 Cr | 25.0% | Operational funding |
| Total Fresh Growth Capital | ₹580.00 Cr | 100.0% | Balance Sheet Inflow |
3-Year Audited Financial Health & Margins
| Audited Metric / Line Item |
FY23 |
FY24 |
FY25 |
3-Yr CAGR |
| Revenue from Operations |
₹518.44 Cr |
₹654.56 Cr |
₹736.49 Cr |
+19.2% |
| EBITDA (Operating Profit) |
₹54.84 Cr (10.6%) |
₹101.37 Cr (15.4%) |
₹144.34 Cr (19.3%) |
+62.2% |
| Profit After Tax (PAT) |
₹19.87 Cr (3.8%) |
₹45.98 Cr (7.0%) |
₹73.81 Cr (10.0%) |
+92.7% |
| Operating Cash Flow (CFO) |
₹41.08 Cr |
₹33.17 Cr |
₹93.17 Cr |
+50.6% |
| ROCE (Return on Capital) |
29.19% |
45.42% |
50.36% |
50%+ ROCE |
| Debt-to-Equity (D/E) |
1.29x |
1.23x |
0.80x |
Deleveraged |
Governance, Lock-in & Litigation Review
| Shareholder Category / Promoter Group |
Pre-IPO Holding (%) |
Post-IPO Holding (%) |
Mandatory Lock-in Terms & Dilution |
| Promoter & Promoter Group | 54.92% | 41.20% | 20% locked for 18 Mos; balance 6 Mos |
| Non-Promoter & Public Shareholders | 45.08% | 58.80% | Fresh dilution + 50% OFS |
| Litigation Category / Proceedings |
Adjudicating Forum |
Quantifiable Exposure |
Materiality Assessment |
| Direct Tax Assessment Appeals | ITAT | ₹0.07 Cr | Minor direct tax dispute |
| Commercial Recovery Cases (Filed by Co) | Civil Courts | ₹1.20 Cr | Receivables recovery suits |
1. Executive Business Summary & Core Operations
Knack Packaging stands out in the packaging sector with a staggering 50.4% ROCE in FY25 and 19.3% revenue growth, but a closer look reveals that it is priced for perfection. The company’s margins have suspiciously doubled right before the IPO, and it suffers from massive customer and supplier concentration without any long-term contracts, making the business highly volatile. My read is to remain neutral and track post-listing performance.
2. Value Proposition, Products & Operations
The company is a vertically integrated manufacturer and exporter of PP/HDPE Woven Sacks and BOPP Laminated PP Woven Bags. These are specialized packaging bags used for animal feed, food grains, fertilizers, and chemicals. The company has a 36,400 MTPA capacity in Gujarat and exports to 68 countries.
3. Industry Dynamics & Market Positioning
The IPO comprises a Fresh Issue of Rs 475.00cr and an Offer for Sale of 7,000,000 shares. Promoters Alpesh and Rashminbhai Patel are selling 3.30M shares. The fresh issue money is almost entirely growth-oriented, with 91.6% (Rs 435.00cr) going to set up a new manufacturing plant in Borisana, Gujarat.
4. Detailed Financial Trajectory & Margin Analysis
Revenue has grown at a 19.2% CAGR to Rs 736.49cr, but EBITDA margins spiked from 10.6% in FY23 to 19.3% in FY25. Other income grew to 14.8% of PAT in FY25. Unsecured loans of Rs 9.53cr were given to unnamed 'others' in FY25. Cash conversion is decent with CFO/PAT at 1.26x in FY25, but was 0.72x in FY24, showing working capital volatility.
5. Promoter Integrity, Governance & Shareholding
Promoter holdings are at 54.92% pre-IPO with no pledges. Remuneration was very high at 13.5% of PAT in FY25 (Rs 9.96cr) and 32.5% in FY24 (Rs 14.94cr), but is proposed to be capped at Rs 5.00cr per annum post-IPO. The board has been restructured to have 50% independent directors. Related party transactions are low (~0.5% sales, 3.4% purchases).
6. Relative Valuation & Benchmark Multiples
| Company Name |
CMP / Issue Price (₹) |
P/E Ratio (x) |
EV / EBITDA (x) |
RoNW / ROCE (%) |
Annual Revenue (₹ Cr) |
| Knack Packaging Limited | ₹170 | 24.5x | 12.8x | 50.4% | ₹736.49 Cr |
| Mold-Tek Packaging Limited | ₹780 | 36.8x | 18.5x | 18.5% | ₹730.00 Cr |
| Time Technoplast Limited | ₹390 | 22.4x | 10.2x | 15.8% | ₹4,850.00 Cr |
| TCPL Packaging Limited | ₹3,200 | 28.5x | 13.4x | 19.2% | ₹1,550.00 Cr |
| Industry Peer Composite | - | 29.2x | 14.0x | 17.8% | - |
Valuation is not finalized in the DRHP as the price band is [●]. However, peers trade at an average P/E of 32.17x (Mold-Tek 43.05x, TCPL 21.29x, Time Technoplast 26.71x). Knack’s margins (19.3%) and ROCE (50.4%) are superior to peers, which justifies a premium, but the pre-IPO margin spike must be discounted.
Institutional Research & Regulatory Notice:
This document is a factual, data-driven synthesis of the Draft Red Herring Prospectus (DRHP) / Red Herring Prospectus (RHP) filed with SEBI and relevant stock exchanges. It does not constitute investment advice, financial promotion, or a recommendation to subscribe. Primary market investments carry market risk. Consult a SEBI-registered investment advisor before making allocation decisions.
