Knack Packaging IPO: These days there is an atmosphere of tremendous enthusiasm about IPO in the stock market. If you too were looking for a strong company to bet in the market, then Knack Packaging Ltd gave a great opportunity. On the last day of bidding, there was tremendous interest among investors in this IPO and it was subscribed a total of 83.30 times. For this company which had set out to raise Rs 439.5 crore from the market, investors demanded more than 158 crore shares, whereas only 1.89 crore shares were kept for sale. Seeing this huge demand and the strong premium (GMP) running in the gray market, investors are now hopeful of a huge profit on the day of listing.
Big investors invested money generously
According to market experts, when big investors invest huge money in an issue, the confidence of the common retail investor also increases significantly. Exactly the same has been seen in the case of neck packaging. The highest demand came from non-institutional investors (NIIs), whose stake was subscribed 154.34 times. Along with this, the reserved quota of Qualified Institutional Buyers (QIB) has also been subscribed 139.81 times. Retail investors also did not hold back and increased their stake by 20.07 times. Let us tell you that even before the opening of the IPO, the company had raised Rs 131.25 crore through anchor investors. This directly reflects the strong confidence of the market about the future of the company.
After all, what business does the company do?
NAAC Packaging, operating out of Ahmedabad, is a well-known name primarily in the world of packaging solutions. This company manufactures Printed and Laminated Woven Polypropylene (PLWPP) bags. If you understand in simple language, the company prepares the strong bags which are used to pack food items, pet food or many types of industrial products. The entire focus of this company is on innovation based and export quality products, which has given it a strong position in the market.
The future will decide the size of the issue
The total size of this IPO has been kept at Rs 439.5 crore. Out of this, new equity shares worth Rs 380 crore will be issued. The amount received from this fresh issue will go directly towards the development work of the company. Apart from this, the existing shareholders of the company are making ‘Offer for Sale’ (OFS) of 35 lakh shares, the total value of which comes to about Rs 59.5 crore. The company had fixed a price band of Rs 161 to Rs 170 for each share, on which investors have invested a lot of money.
Gray market premium is indicating profit
After the closure of the issue, now everyone’s eyes are on the gray market and the listing day. According to InvestorGain data, GMP of Knack Packaging is currently trending strongly around Rs 25.5. If we combine the upper price band of Rs 170 and this current premium, then the possible listing of the share can be at Rs 195.5.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
