Knack Packaging IPO listing: Shares list at 11% premium over issue price

Shares of Knack Packaging gained on their post-listing debut on the BSE. The stock hit an intraday high of Rs 192, a gain of Rs 22 or 12.94 from the issue price. 

Knack Packaging made a healthy stock market debut, listing at Rs 188 on the NSE and Rs 186 on the BSE. 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. 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 Rs 175 to manage downside risk. Fresh investors should consider entering on dips after monitoring the company's upcoming quarterly performance," said  Shivani Nyati, Head of Wealth at Swastika Investmart Ltd.

In the pre-opening session, Knack Packaging shares settled at Rs 188 on the National Stock Exchange (NSE), a 10.59 per cent premium over the issue price of Rs 170.

In the pre-opening session, Knack Packaging shares settled at Rs 186 on the BSE, a 9.41 per cent premium over the issue price of Rs 170.

Ahead of the initial public offering (IPO), Knack Packaging Ltd raised Rs 131.25 crore from anchor investors. The IPO had a price band of Rs 161-170 per share.

The Qualified Institutional Buyers (QIBs) category fetched 154.34 times subscription, while the non-institutional investors' quota was subscribed 139.81 times. The portion for retail investors attracted 20.07 times subscription.

The initial public offering (IPO) of Knack Packaging Ltd received strong participation from investors, with the issue getting subscribed 83.33 times, on the final day of bidding on Friday.

According to Investorgain, CKnack Packaging's unlisted shares are trading at a grey market premium (GMP) of Rs 9. Considering the upper price band of Rs 170, the company's shares are expected to list at around Rs 179, reflecting a grey market premium of 5.29 per cent.