MC EXCLUSIVE Manipal Cards files confidential DRHP to raise Rs 1,200 crore at Rs 12,000-crore valuation

MPISL supplies credit, debit, smart and identity cards to a wide client base of public and private sector banks, fintech firms and government departments.

Manipal Payment and Identity Solutions Ltd (MPISL), India’s largest manufacturer of payment and identity cards, has filed a draft red herring prospectus (DRHP) under the confidential route to raise around Rs 1,200 crore through an initial public offering (IPO), sources have told Moneycontrol.

The IPO is expected to value the company at approximately Rs 12,000 crore.

The DRHP,  submitted on June 28, outlines a mix of primary and secondary share sales. The promoters, led by the Gautam Pai family, hold a 60 percent stake in the company. The rest is owned by institutional and public shareholders, including Nuvama Wealth Management.

“The promoters intend to retain a 51 percent stake post-listing. A significant portion of the proceeds will be used to service debt held at one of their promoter-level entities,” a source with direct knowledge of the matter said.

Moneycontrol reported on April 21 that the promoter entities — Manipal Technologies Ltd (MTL) and Manipal Media Networks Ltd —sold a combined 6 percent stake in MPISL to Nuvama.

Another 1.5 percent 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.

MPISL supplies credit, debit, smart and government-issued identity cards to a wide client base that includes major public and private sector banks, fintech firms, and government departments.

Its manufacturing facilities are certified by Visa, Mastercard, and Europay, and it has global technical tie-ups with Chan Wanich Security Printing in Thailand and Thomas Greg and Sons in Colombia.

The company, which is targeting a listing this fiscal, has initiated steps to strengthen its board and governance frameworks ahead of the IPO.

MPISL inducted Binoy Parikh as an independent director. A chartered accountant and law graduate from Gujarat, Parikh is a partner at Katalyst Advisors with experience in mergers and acquisitions, family arrangements and succession planning. He was previously associated with KPMG.

Other independent directors on the board include Abhay Anant Gupte, a former senior executive at Deloitte with deep expertise in financial reporting and corporate governance; Baikadi Narahari, a legal veteran known for his work in regulatory compliance; Ramachandra Kasargod Kamath, a former chairman and managing director of Punjab National Bank with extensive experience in institutional finance; Padmaja Shailen Ruparel, co-founder of the Indian Angel Network and a key voice in India’s early-stage investment ecosystem and Rohan Ajila, a private equity professional focused on consumer and fintech ventures.