Ahmedabad-based Knack Packaging is set to raise ₹440 crore through an initial public offering (IPO) as it looks to expand its manufacturing capacity to meet growing demand for woven polypropylene packaging. The issue will open for anchor investors on 30 June and for public subscription on 1 July.
The IPO comprises a fresh issue of ₹380 crore and an offer for sale (OFS) of ₹60 crore through the sale of up to 35 lakh equity shares by the promoters, according to reports in the financial media. The price band has been fixed at ₹161-170 per equity share, while eligible employees bidding under the employee reservation portion will receive a discount of ₹16 per share. Investors can bid for a minimum of 88 equity shares and in multiples of 88 thereafter.
Knack Packaging manufactures printed and laminated woven polypropylene (PLWPP) bags and exports to around 75 countries. The company operates a 1.85-million-square-foot manufacturing facility in Mehsana, about 50 km from Ahmedabad, equipped with rotogravure printing presses, tapeline machinery, woven looms, bag converting equipment, extrusion, coating and lamination lines. The plant currently has a production capacity of around 3,000 tonnes per month, producing nearly 10 to 12 lakh bags each day.
The company plans to utilise ₹320 crore from the fresh issue to establish a new manufacturing facility at Mehsana, increasing its production capacity from 3,000 tonnes to 6,000 tonnes per month. The remaining proceeds will be used for general corporate purposes.
“We are in the process of doubling our capacity, with construction already underway,” said Diptesh Parekh, general manager – sales and marketing. “We currently manufacture around 10 to 12 lakh bags per day.”
Parekh said the BOPP bag industry is growing at an annual rate of 20-25%, driven by rising demand for durable, customisable and sustainable packaging solutions across the food, agriculture and industrial sectors. The proposed expansion is expected to strengthen Knack Packaging’s ability to cater to both domestic and international markets.
Knack Packaging filed its draft red herring prospectus (DRHP) with SEBI in September 2025 and received regulatory approval in December 2025.
