Manipal Cards promoters sell minority stake to Nuvama, may use funds to repay debt

Manipal Cards Nuvama Deal

Manipal Payment and Identity Solutions Limited (MPISL), a subsidiary of Manipal Technologies Limited (MTL), and Manipal Media Networks Limited—both promoted by the Gautam Pai family—have sold around a 6% stake to private wealth management firm Nuvama, sources aware of the development told Moneycontrol on condition of anonymity.

Alongside, the two promoter entities have sold another 1.5% stake to several family offices, the people cited above added.

The promoters are expected to use the fund raised through these transactions to repay outstanding foreign currency loans taken from the BlackRock group and Hong Kong-based asset management firm SC Lowy.

Manipal Payment and Identity Solutions Limited is India’s largest manufacturer of credit, debit, and smart cards, catering to a wide customer base that includes public sector banks, private lenders, fintech companies, and government departments. The company operates Visa-, Mastercard-, and Europay-certified production facilities and has technical partnerships with Thailand’s Chan Wanich Security Printing and Colombia-based Thomas Greg and Sons.

According to sources, MPISL is eyeing an initial public offering (IPO) in FY26.

Emails sent to Manipal Cards and Nuvama seeking comment remained unanswered at the time of publishing this article.

Strong performer

MTL posted a strong financial performance in FY23, with consolidated revenue increasing to ₹1,910 crore from ₹1,373 crore in FY22. EBITDA rose to ₹230 crore, pushing margins up to 12% from 9.4% a year earlier. The performance was driven by MCT Cards and Manipal Business Solutions (MBS), both of which benefited from higher card prices and strong demand across the banking and payments sector.

MCT Cards, in particular, recorded a 162% year-on-year jump in revenue to ₹629 crore in FY23. EBITDA margins also improved significantly to 13.3% from 7.75%, supported by price hikes due to chip shortages and increased volumes in Visa and RuPay dual-interface cards. Management expects continued demand for card issuance and reissuance by banks, export orders, and government ID contracts to sustain the growth momentum.

India Ratings (Ind-Ra) rated MTL’s liquidity as “adequate.” The group held ₹35 crore in cash and equivalents at the end of FY23, with average working capital utilization at 81%. Gross debt remained nearly unchanged at ₹480 crore, while net leverage improved to 2.0x from 3.4x, supported by improved earnings. Interest coverage also strengthened to 3.5x from 2.5x in the previous year.

While MTL did not extend major financial support to its subsidiaries in FY22 and FY23, it continues to offer strategic and operational backing to MCT Cards. The cards division contributed around 33% of MTL’s total revenue in FY23, highlighting its strategic relevance within the group.

With Nuvama’s investment providing  capital, the company is looking to unlock further value across its fintech and identity services businesses, while also improving its balance sheet and funding long-term growth.