Newly Listed Stock Jumps 12% After BofA Securities Acquires 7.17 Lakh Shares

Synopsis: BofA Securities Europe SA acquired a 0.58% stake in Knack Packaging Limited for ₹13.34 crore, highlighting strong institutional confidence in the company’s growth prospects.

This Newly Listed Stock, engaged in manufacturing flexible packaging products, printed laminates, and paper-based packaging solutions for food, FMCG, agro, pharmaceutical, and industrial customers across India and global markets, jumped 11.60 percent after BofA Securities acquired 7.17 lakh equity shares in the company.

With a market capitalization of Rs. 2,411.82 crores, the share of Knack Packaging Limited has reached an intraday high of Rs. 203.90 per equity share, rising nearly 11.60 percent from its previous day’s close price of Rs. 182.70. Since then, the stock has retreated and is currently trading at Rs. 190.50 per equity share. 

Reason Behind the Surge:

BofA Securities Europe SA has made an investment in Knack Packaging Limited by acquiring 7.17 lakh equity shares, representing a 0.58 percent stake in the company. The shares were bought at Rs. 185.93 per share, taking the total value of the transaction to around Rs. 13.34 crore. The stake purchase by a global institutional investor reflects continued interest in Knack Packaging, which operates in the packaging industry and serves customers across various sectors.

Business Highlights:

As of May 31, 2026, Knack Packaging Limited had built strong manufacturing and operational capabilities. The company has developed over 73,000 printing cylinders, managed 13,379 SKUs, and operates a 92,065.47 sq. ft. warehouse, enabling it to efficiently serve more than 1,950 customers across domestic and international markets while maintaining consistent product quality. As of FY26, the company employed a total workforce of 1,834 people, including contractual workers, reflecting its large-scale operations and production capacity.

IPO Details:

Knack Packaging raised Rs. 439.50 crore through its initial public offering (IPO), which included a fresh issue of Rs. 380.03 crore and an offer for sale (OFS) of Rs. 59.47 crore. The IPO was open for subscription from July 1 to July 3, 2026, with the issue price fixed at Rs. 170 per share.

The company’s shares were listed on the NSE and BSE on July 8, 2026 at Rs. 188 per share, delivering a listing gain of 10.59 percent over the issue price. The positive debut reflected healthy investor interest in the company’s business and future growth prospects.

Customer Base and Exports:

Knack Packaging serves a strong and diversified customer base in both domestic and international markets. In India, its key clients include Baba Agro Food Limited, Drools Pet Food Private Limited, Ebro India Private Limited, KRBL Limited, and DCM Shriram Limited. 

The company also exports its products to customers in 68 countries, serving global brands such as Cargill, Cristo S.A., and Repi Soap and Detergent PLC. Exports form a significant part of its business, with the United States, Mexico, and South Africa together contributing 35.19 percent of the company’s total export revenue, highlighting its strong global presence.

Company Overview:

Knack Packaging Limited is an Indian manufacturer of industrial packaging products, specializing in PP (polypropylene) and HDPE woven packaging solutions for domestic and international markets. The company has grown into one of India’s larger producers and exporters in this segment, supplying customers across dozens of countries with woven fabrics, sacks, and laminated packaging products.

Recent Results:

Coming into financial highlights, Knack Packaging Limited’s revenue has increased from Rs. 736 crore in FY25 to Rs. 823 crore in FY26, which has grown by 11.82 percent. The net profit has also grown by 25.68 percent from Rs. 74 crore in FY25 to Rs. 93 crore in FY26. Knack Packaging Limited’s revenue and net profit have grown at a CAGR of 17 percent and 61 percent, respectively, over the last three years.

In terms of return ratios, the company’s ROCE and ROE stand at 35.3 percent and 43.6 percent, respectively. Knack Packaging Limited has an earnings per share (EPS) of Rs. 9.27, and its debt-to-equity ratio is 0.88x.

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