Daijiworld Media Network - Mumbai

Mumbai, Jul 8: Shares of Knack Packaging Ltd made a strong stock market debut on Wednesday, listing at a premium of nearly 11 per cent over the issue price following an overwhelmingly subscribed initial public offering (IPO).

On the BSE, the stock opened at Rs 186, up 9.41 per cent from its issue price of Rs 170 per share. It later climbed 12.94 per cent to Rs 192.

On the National Stock Exchange (NSE), the stock was listed at Rs 188, registering a gain of 10.58 per cent over the issue price.

Following the listing, the company's market capitalisation stood at Rs 2,275.99 crore.

The Rs 439.5-crore IPO received an enthusiastic response from investors, with the issue being subscribed 83.33 times on the final day of bidding last week.

The public issue was offered in a price band of Rs 161-170 per share and comprised a fresh issue of equity shares worth Rs 380 crore along with an Offer for Sale (OFS) of up to 35 lakh equity shares, aggregating Rs 59.5 crore.

According to the company, the proceeds from the fresh issue will be used to establish a new manufacturing facility at Borisana in Kadi, Mehsana district of Gujarat, while the remaining funds will be utilised for general corporate purposes.

Headquartered in Ahmedabad, Knack Packaging is an integrated, innovation-driven and export-oriented packaging solutions provider. The company manufactures customised Printed and Laminated Woven Polypropylene (PLWPP) bags and PLWPP pinch-bottom bags for sectors including food products and pet food industries.