Ahmedabad-based Knack Packaging Ltd. has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), initiating its Initial Public Offering (IPO) process aiming to raise ₹475 crore through a fresh issue of equity shares. The IPO also includes an Offer for Sale (OFS) of up to 70 lakh equity shares by promoters and current shareholders.
Purpose of the IPO
- ₹435 crore will be allocated toward setting up a new manufacturing facility in Borisana, Kadi (Mehsana district), Gujarat.
- The remaining ₹40 crore will be used for general corporate purposes, such as working capital or growth initiatives.
Financials & Market Position
- In FY25, Knack Packaging reported a revenue of ₹736.49 crore and a net profit of ₹73.81 crore. The company’s net worth stood at around ₹214.70 crore.
- The company holds approximately 10% market share in India’s flexible bulk PLWPP bags segment.
Lead Managers & Listing Plans
The lead managers for the IPO have been named as:
- Systematix Corporate Services
- IDBI Capital Markets & Securities
- Pantomath Capital Advisors
Upon approval, the company plans to list on both BSE and NSE.
At a Glance: IPO Snapshot
| Detail | Information |
|---|---|
| IPO Size | ₹475 crore via fresh issue |
| Offer for Sale (OFS) | 70 lakh shares by promoters/shareholders |
| Use of Funds | ₹435 cr for new facility; ₹40 cr for corporate purposes |
| FY25 Revenue / PAT | ₹736.5 cr / ₹73.8 cr |
| Lead Managers | Systematix, IDBI Capital, Pantomath |
| Listing | Expected on NSE & BSE |
What It Means for Stakeholders
- Investors: Gain an opportunity to participate in a growing packaging business, strategically expanding its manufacturing footprint.
- Knack Packaging: Will take a significant step to bolster capacity, reduce reliance on debt, and broaden its market presence.
- Industry Impact: Highlights increasing investor interest in India’s flexible packaging sector, driven by demand across food, pet, and retail industries.
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