Knack Packaging Share Price Rallies 10% After Bank of India Mutual Fund Picks Up Stake

Knack Packaging share price climbed as much as 10% in Friday’s trade after Bank of India Mutual Fund acquired a 0.57% stake in the recently listed company through a bulk deal. The transaction came just two days after the company’s stock market debut and added to positive investor sentiment surrounding the flexible packaging manufacturer.

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The stock rose to an intraday high of ₹215.23 on the National Stock Exchange, gaining 10.54% over the previous closing price. Around midday, Knack Packaging share price continued to trade near its session high as buying interest remained firm.

Big Purchase Attracts Investors' Interest

As per the exchange data, Bank of India Mutual Fund acquired 7 lakh shares of Knack Packaging for a price of ₹196.59 per share. The acquisition represents a 0.57% stake in the company and is valued at approximately ₹13.76 crore.

The transaction follows the company’s recent listing and reflects institutional participation in the stock shortly after its market debut. Based on prevailing market prices, Knack Packaging’s market capitalisation stood at around ₹2,381 crore during Friday’s session.

Strong Listing Performance

Knack Packaging was listed on the NSE on July 8 at ₹188 per share, representing a premium of 10.59% over its IPO issue price of ₹170. On the BSE, the stock debuted at ₹186, reflecting a premium of 9.41%.
The listing exceeded expectations indicated by the grey market before the debut.

The company’s initial public offering, which opened for subscription from July 1 to July 3, received robust investor participation. The ₹439.5-crore public issue was subscribed 83.33 times overall.

Qualified Institutional Buyers subscribed their reserved portion 154.34 times, while the Non-Institutional Investor category saw subscriptions of 139.81 times. The retail investor segment was subscribed 20.07 times.

Business Operations

Headquartered in Ahmedabad, Knack Packaging manufactures customised Printed and Laminated Woven Polypropylene (PLWPP) bags and PLWPP pinch-bottom bags. The company supplies packaging products to industries including food products and pet food manufacturers.

Its products are exported to 71 countries, with a customer base exceeding 1,950 clients globally. The company has stated that it holds an estimated 10.1% share of India’s flexible bulk PLWPP bags market.

Its client portfolio includes domestic companies such as KRBL, Drools, DCM Shriram and Baba Agro Foods, along with international customers including Cargill.

Institutional Interest After Listing

The bulk purchase by Bank of India Mutual Fund comes shortly after Knack Packaging’s successful market debut and follows strong demand witnessed during its IPO. The latest transaction indicates continued institutional participation in the newly listed stock.

As trading progressed on Friday, Knack Packaging share price remained among the notable gainers, with investors tracking both institutional activity and the company’s performance following its entry into the listed market.