Knack Packaging debuts on bourses, lists 11% above issue price on NSE

Knack Packaging shares were listed at a 11% premium on top of the issue price on the National Stock Exchange (NSE) at ₹188 apiece during the trading session on Wednesday, July 8, according to the exchange data.

This listing shows that the company shares were listed at an 11% premium against the upper price band of the initial public offering (IPO) of ₹170 per share. At 10:35 am, Knack Packaging shares were trading 0.16% lower at ₹187.77 apiece on the NSE.

On BSE, Knack Packaging shares made their debut at ₹186 per share, marking a 9.4% premium on top of their upper price band. The company shares were trading 0.86% higher at ₹187.60 on the stock exchange.

How much did investors gain per lot?

With Knack Packaging IPO’s lot size of 88 shares per lot, stock market investors who received the allotment witnessed an increase in investment value by ₹1,584 per lot to ₹16,544 per lot, as per NSE data.

With the initial price band of ₹161 to ₹170 per share on every lot, the fresh issue component was worth around ₹380 crore in the public issue, while the remaining funds were raised for the OFS sellers.

At the NSE listing price of ₹188 per share, the value of one lot increased to ₹16,544, from ₹14,960 at the upper price band.

Knack Packaging IPO details

Knack Packaging IPO comprised a fresh issue of up to ₹380 crore worth of equity shares along with an offer-for-sale (OFS) component of ₹59.5 crore worth of equity shares by existing shareholders, as per the official filings.

The company plans to use the funds raised from the stock market to set up a new manufacturing facility in Gujarat's Mehsana district, while using the remaining funds for corporate general purposes.

The Ahmedabad-based company is an integrated packaging solutions provider which manufacturers customised printed and laminated woven polypropylene (PLWPP) bags and PLWPP pinch-bottom bags, serving various sectors, including food products and pet foods.

The company shares were allotted to investors earlier this week on Monday, and the stocks were listed on the indices on July 8. Knack Packaging IPO was oversubscribed 83.33 times as of the end of the three-day bidding rounds.

Knack Packaging IPO bidding data showed that the qualified institutional buyers (QIBs) bid 154.34 times for 82,37,07,192 equity shares, compared to the 53,36,957 shares on offer for the segment.

In the Non-institutional investors (NIIs) portion, the bidders subscribed 139.81 times for 56,57,92,040 shares, compared to the 40,46,739 shares on reserve for the segment, according to the exchange data.

While the retail investors subscribed 20.07 times to the IPO round, bidding for 18,95,00,872 shares, compared to the 94,42,391 shares on offer for the segment.