Knack Packaging shares list at 11% premium, beat grey market expectations

New Delhi: Knack Packaging made a strong debut on the stock exchanges on Wednesday, with its shares listing at a premium of over 10 per cent to the issue price, outperforming prevailing grey market expectations and signalling healthy investor demand for the packaging solutions company. The stock opened at Rs 188 on the National Stock Exchange (NSE), a premium of 10.59 per cent over the IPO price of Rs 170 per share. On the BSE, it listed at Rs 186, up 9.41 per cent from the issue price. The listing exceeded grey market estimates, which had indicated a more modest premium ahead of the debut. Knack Packaging had raised Rs 439.5 crore through its maiden public offering, comprising a fresh issue of Rs 380 crore and an offer for sale (OFS) worth Rs 59.5 crore by existing shareholders. The IPO was priced in the band of Rs 161-170 per share. The public issue had received an overwhelming response from investors, with the IPO being subscribed more than 83 times during the three-day bidding period. Strong demand was seen across qualified institutional buyers (QIBs), non-institutional investors and retail investors, underscoring broad-based interest in the offering. The Ahmedabad-based company manufactures rigid plastic packaging products used across sectors such as lubricants, chemicals, paints, food and edible oils. It plans to utilise proceeds from the fresh issue primarily to establish a new manufacturing facility in Gujarat, besides meeting general corporate requirements. The listing adds to a series of positive IPO debuts in recent months, reflecting continued investor appetite for fundamentally strong companies despite bouts of volatility in the broader equity market. While listing gains have remained attractive in several offerings, analysts continue to advise investors to evaluate businesses based on long-term fundamentals rather than listing-day performance alone.