Ahmedabad-based Knack Packaging, one of the largest manufacturers of printed and laminated woven polypropylene bags has filed the draft document with Sebi to raise funds via initial public offering to fund its new facility and for capital expenditure.
The company has proposed to mobilise Rs 475 crore by issuing fresh equity, wherein promoters will be selling 70 lakh shares via an offer-for-sale route.
Up to Rs 435 crore of the fresh proceeds will be utilised for setting up of new manufacturing facility at Borisana, Gujarat, and the remainder for general corporate purposes. The proposed facility will be utilised to make printed and laminated woven poly propylene (PLWPP) bags and PLWPP pinch bottom bags. The total estimated cost for the Gujarat project is pegged at Rs 514.9 crore.
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"So far the company has deployed Rs 22.6 crore for the project site and will deploy Rs 79.9 crore through internal accruals. The balance of this cost, approximately Rs 435 crore is estimated to be utilised from the net proceeds," Knack Packaging said in its DRHP on September 4.
The company competes with Time Technoplast, TCPL Packaging and Mold-Tek Packaging in the listed space, and had approximately 10.1% share in India's market for flexible bulk PLWPP bags in FY25, serving domestic and international companies in food products and pet foods segments.
Knack Packaging reported decent financial performance with a net profit for year ended March 2025 rising by 60.5 percent on year to Rs 73.8 crore. Revenue increased by 12.5 percent on year to Rs 736.5 crore compared to Rs 654.6 crore during the same period a year ago.
The merchant bankers managing the Knack Packaging IPO are Systematix Corporate Services, IDBI Capital Markets & Securities and Pantomath Capital Advisors.
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