Knack Packaging IPO Listing: Shares Jump Nearly 11% on NSE & BSE; Should You Buy, Hold or Sell?

Knack Packing IPO made a stunning debut on the stock market today, listing at an 11% premium over the IPO price.

Knack Packaging shares debuted on the NSE and BSE on July 8, listing at around Rs. 188 to Rs. 189 against the Rs.170 issue price.

At the time of writing, Knack Packaging Share Price was trading at Rs. 186.69, 9.8% on the NSE and at Rs. 186.85 on the BSE, about 9.76%.

Knack Packaging IPO Details

The Gujarat-based integrated packaging solutions provider ran its Rs. 439.5 crore mainboard IPO from July 1st to 3rd, with a price band of Rs. 161-Rs. 170 per share.

The issue was priced at the upper end, Rs. 170, comprising a Rs. 380 crore fresh issue and a Rs. 59.5 crore offer for sale.

It was subscribed 87.17 times overall, with retail subscription reaching 21.09 times, 160.22 times in QIB, and in the NII category it was subscribed 146.64.

The issue raised 131.25 crore from anchor investors on June 30, led by Axis New Opportunities AIF and Ashoka India Equity Investment Trust.

Should You Hold/Buy/Sell?

"The listing was better than grey market expectations.The company is backed by strong fundamentals, including healthy revenue growth, improving profitability, high ROE and ROCE, and robust operating margins. Its reasonable valuation and fully integrated manufacturing capabilities provide a competitive advantage." said Shivani Nyati, Head of Wealth at Swastika Investmart Ltd.

"However, investors should keep an eye on customer concentration risk and the successful execution of its new manufacturing facility, which will be crucial for future growth. Our post-listing view remains positive. Investors who have received allotment can continue to hold the stock for further upside, while maintaining a stop-loss at ₹175 to manage downside risk. Fresh investors should consider entering on dips after monitoring the company's upcoming quarterly performance." she further added.

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