Manipal Cards files confidential DRHP to ₹1,200 crore via IPO

Manipal Payment and Identity Solutions Ltd (MPISL) has filed a draft red herring prospectus (DRHP) confidentially to raise approximately ₹1,200 crore via an initial public offering (IPO).

According to a Moneycontrol report, the IPO is expected to value the company at approximately ₹12,000 crore.

People with knowledge of the matter told Moneycontrol that the DRHP, filed on June 28, includes a combination of primary and secondary share sales.

Earlier it was reported that Manipal Payment and Identity Solutions Limited (MPISL), a subsidiary of Manipal Technologies Limited (MTL), and Manipal Media Networks Limited have sold around a 6% stake to private wealth management firm Nuvama, citing sources.

Another 1.5% stake was sold to a group of family offices. The proceeds from these stake sales are being used to repay outstanding foreign currency loans from BlackRock and Hong Kong-based asset manager SC Lowy, it said.

The promoters, headed by the Gautam Pai family, currently hold a 60% stake in the company. The remaining stake is with institutional and public shareholders, such as Nuvama Wealth Management. Post the listing, the promoters plan to maintain a majority 51% stake to retain control over the business.

The report further stated that the promoters intend to retain a 51% stake post-listing. A significant portion of the proceeds will be used to service debt held at one of their promoter-level entities.

The company has also begun enhancing its board structure and governance frameworks in preparation for the IPO. It aims to list this fiscal year, the report stated.

Manipal Payment and Identity Solutions Limited is India’s largest banking and smart card manufacturer and a trusted partner for global banks, fintechs, and governments. Its comprehensive card services cover the entire spectrum - creation, design, manufacturing, and delivery to the end customer.

Founded in 2008 with a vision to enhance the payment experience of consumers by offering innovative cards, the firm has expanded its operations and partners across the United Kingdom, Europe, Asia-Pacific, and MEA regions.