Knack Packaging's IPO: A Leap in Expansion Strategy

Knack Packaging, a prominent packaging solutions provider, is gearing up for a major expansion by filing draft papers for an Initial Public Offering (IPO) with the Securities and Exchange Board of India (Sebi). This move aims to bolster the company's growth trajectory.

The proposed IPO includes a fresh equity issue valued at Rs 475 crore, in addition to an Offer for Sale (OFS) of 70 lakh equity shares by the promoters and an existing shareholder. According to the filed Draft Red Herring Prospectus, the funding will be primarily directed towards establishing a new manufacturing site in Borisana, Kadi, Gujarat, amounting to Rs 435 crore. The remainder will cater to broad corporate needs.

Based in Ahmedabad, Knack Packaging is a leader in innovation-driven, export-focused packaging solutions, offering a wide array of products including Printed and Laminated Woven Polypropylene (PLWPP) bags. The company holds a significant 10% market share in India's flexible bulk PLWPP segment, according to a Technopak Report. The Indian flexible plastic packaging industry is poised for growth, projected to increase at an 8% CAGR over the next few years.

(With inputs from agencies.)