Summary:
Knack Packaging, a leading player in India’s packaging solutions industry, has filed its Draft Red Herring Prospectus (DRHP) with SEBI to raise ₹475 crore through a fresh issue as part of its upcoming Initial Public Offering (IPO). The proceeds will primarily be used for capacity expansion and corporate requirements.
₹475 Crore Fresh Issue to Fund Expansion
- ₹435 crore will be allocated for setting up a new manufacturing plant at Borisana, Kadi in Mehsana, Gujarat.
- The remaining ₹40 crore will be used for general corporate purposes.
This marks a significant step in Knack Packaging’s expansion strategy, strengthening its production capabilities and diversifying its operations.
Offer for Sale (OFS) Component
Along with the fresh issue, the IPO will also feature an OFS of 70,00,000 equity shares by promoters and an existing shareholder.
Headquartered in Ahmedabad, Knack Packaging commands around 10% market share in India’s flexible bulk PLWPP (Printed & Laminated Woven Polypropylene) bags segment in FY25. Its diverse product portfolio caters to industries such as food, pet food, and agro-commodities.
Strong Market Outlook
According to a Technopak Report:
- The Indian flexible plastic packaging market is expected to grow from ₹1,85,000 crore in FY24 to ₹2,72,000 crore in FY29, at a CAGR of 8%.
- The WPP packaging segment is projected to rise from ₹45,000 crore to ₹70,000 crore, at a CAGR of 9.2%.
- The Printed & Laminated WPP bulk bags sub-segment is set to double from ₹2,500 crore to ₹5,000 crore, growing at a robust 15% CAGR.
These forecasts highlight the strong growth potential for Knack Packaging as demand accelerates.
Listing & Lead Managers
The shares 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.
Disclaimer:
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