Knack Packaging Aims to Raise Rs 475 Crore in IPO for New Gujarat Facility
Knack Packaging Ltd., an Indian flexible bulk packaging company, has filed for an IPO to raise Rs 475 crore through a fresh issue of shares. The IPO also includes an offer for sale of up to 70 lakh shares by promoters. The company plans to use Rs 435 crore to establish a new manufacturing facility in Gujarat. Knack Packaging currently holds a 10% market share in India's flexible bulk PLWPP bags segment, serving clients across 68 countries. The company's current capacity utilization is 85.98% with an aggregate effective installed capacity of 36,400 MT.
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Knack Packaging Ltd., a prominent player in India's flexible bulk packaging industry, has taken a significant step towards public listing by filing draft offer documents for its initial public offering (IPO). The Ahmedabad-based company is looking to raise funds for expansion and offer partial exit to its promoters through this move.
IPO Structure
The proposed IPO comprises two components:
- A fresh issue of shares to raise Rs 475.00 crore
- An offer for sale (OFS) of up to 70 lakh shares by ten promoters
Funds Utilization
The majority of the funds raised through the fresh issue will be allocated as follows:
- Rs 435.00 crore for establishing a new manufacturing facility in Borisana, Mehsana, Gujarat
- The facility will produce printed and laminated woven polypropylene bags and PLWPP pinch bottom bags
Current Operations
Knack Packaging has established a strong presence in the packaging industry:
- Current capacity utilization: 85.98% across facilities
- Aggregate effective installed capacity: 36,400 MT
- Market share: Approximately 10% in India's flexible bulk PLWPP bags segment
Client Base
The company serves a diverse range of clients both domestically and internationally:
Domestic Clients
- Baba Agro Food
- Drools Pet Food
- KRBL
- DCM Shriram
International Reach
- Serves clients across 68 countries
- Notable international clients include:
- Cristo S.A.
- Cargill
- Repi Soap and Detergent PLC
Industry Outlook
The IPO filing by Knack Packaging reflects the growing demand for flexible bulk packaging solutions in India and globally. As the company seeks to expand its production capabilities with the new Gujarat facility, it is positioning itself to capitalize on the increasing need for efficient and sustainable packaging options across various industries.
The success of this IPO could provide Knack Packaging with the necessary capital to strengthen its market position and potentially increase its 10% market share in the flexible bulk PLWPP bags segment in India.
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