Manipal Payment And Identity Solutions
The secure solutions primarily comprise secure logistics, personalization of insurance policies, premium notices, renewal letters and marketing collaterals, along with security-enhanced packaging such as tamper-evident envelopes, holograms and coated products. The smart tagging and IOT solutions primarily entail printing of excise labels with holograms and encrypted QR codes for various state excise departments, IOT and track and trace solutions with radio-frequency identification (RFID) tags, and anti-counterfeiting solutions.
The company is part of The Manipal Group, which commenced operations in 1948. The Manipal Group, offers solutions across industry verticals such as banking, financial services and insurance, media publishing, consumer goods and retail, along with providing solutions to Government entities.
MPI is among the largest manufacturers of payment cards, both globally and in India in FY2026 with the market share of 36.4% (billed 13.54 million credit cards) in the credit card issuance and 30.9% (72.66 million debit cards) in the debit card issuance in India for FY2026. MPI is the highest ranked company in India and 14th ranked company globally in terms of shipment of payment cards with chips and magstripe in 2023, and among the top 10 card manufacturers for Mastercard and another payment network globally in 2023.
The company is one of the leading metal card manufacturers in India holding a patent for metal cards manufacturing, and supply metal cards to the top four credit cards issuers in India. MPI is also one of the largest manufacturers of dual interface (DI) cards in India in FY2026.
The company is one of the largest producers of national identity cards in India, having successfully billed over 1 billion cards in 12 regional languages. It is associated with transport authorities in Maharashtra and Chhattisgarh for issuing registration certificates and driving licenses in these regions.
MPI catered to a diverse set of over 300 customers in FY2026 across domestic and international jurisdictions. The products such as credit cards, debit cards and metals cards have been exported to number of countries. The customers for payment cards include private sector banks, public sector banks (PSBs), small finance banks, payment banks, co-operative banks, prepaid payment instrument license holders and fintechs.
The company serve customers through 10 facilities across India. These include one card manufacturing facility and personalization bureau in Manipal Karnataka, one card manufacturing facility and cheque printing facility in Manipal, one personalization bureau in Navi Mumbai, one personalization bureau and cheque printing facility each in Noida and Chennai, one cheque printing facility each in Navi Mumbai and Howrah; and three facilities for smart tagging and IOT solutions along with coated products business in Manipal and Bengaluru. The company has over 1,800 employees at end March 2026. The outstanding debt of the company stood at Rs 116.18 crore at end June 2026.
The Offer and the Objects
The initial public offer (IPO) consists of fa resh issue to raise Rs 320 crore through issuance of 0.96 crore equity shares at the lower band of Rs 332 per share (face value Rs 2 per share) and 0.94 crore equity shares at the upper band of Rs 339 per share.
The IPO also comprises of offer for sales (OFS) of 1.43 crore equity shares to raise Rs 475-485 crore, from the promoter - Manipal Technologies. The promoter shareholding in the company will decline to 53.92% post- IPO from 62.65% pre-IPO.
The issue is to be made through the book-building process and will open on 09 September 2026 and will close on 11 September 2026.
The company proposes to utilize Rs 238.43 crore out of the fresh issue proceeds of Rs 320 crore for funding the capital expenditure requirements towards purchasing and setting up of new and second-hand equipment at (a) card manufacturing facility, personalization bureau and cheque printing facility in Manipal, (b) personalization bureau and cheque printing facility in Chennai, Noida, and personalization bureau in Navi Mumbai, (c) cheque printing facilities in Navi Mumbai and Howrah, (d) central cards processing centers at Chhattisgarh RTO, and (e) Smart Tagging and IoT Solutions facility in Manipal and balance towards general corporate purposes. Of the proposed capex of Rs 238.43 crore to be funded from IPO, Rs 170.4 crore would be spent in FY2027 itself, Rs 18.96 crore in FY2028 and Rs 49.07 crore in FY2029.
Strengths
MPI is among the largest manufacturers of payment cards in India in FY2026. It is also a prominent player in the global payment card solutions market. Provides a comprehensive range of products and services for various customer needs.
The payment cards issuance in India is expected to rise at CAGR of 13.1% from FY2026 to reach 535 million in FY2030.
Experience and expertise positions MPI as one of the market leaders for payment card solutions, enabling it to capitalize on the global growth in demand for payment card and identity solutions.
Long-standing relationships with over 300 customers, necessitating high security due to access to sensitive cardholder information. The average relationship with top 10 customers is 12.46 years at end March 2026.
Strategically involved with large government projects, such as national identification, driving license and other identity projects.
Acquisition of variable data printing business has allowed to consolidate operations and expand integrated solutions encompassing cheques, cards, and secure logistics, delivering products efficiently to banking customers.
With a commitment to innovation and security, continuously adapting solutions to evolving customer needs, leveraging in-house technology to provide tailored products and services across diverse sectors.
Investing continuously in strengthening the technology, infrastructure and IT and cybersecurity systems at facilities to comply with security standards and controls laid by payment networks and customers.
One of the leading metal card manufacturers in India holding a patent for metal cards manufacturing.
Extensive capabilities across manufacturing, technology and logistics enables to deliver secure products with quick turnaround times.
Weaknesses
Top 10 customers accounted for 58.67% of revenue in FY2026 and loss of any of key customers may have an adverse effect on business.
Purchases from the top 10 suppliers represented 56.05% of total purchases in FY2026. Timely raw material supply is critical for manufacturing, personalization, and printing products.
A significant portion of revenues is generated from card sales. Between FY2021 to FY2026, debit card transaction volume and value declined significantly, largely due to the rise of UPI as the preferred payment method.
Shifts in end-user preferences towards digital wallets, virtual cards, or alternative payment forms may lead to a decline in demand for physical cards.
Rapid technological advancements could render existing product portfolio obsolete, requiring the company to commit substantial resources to research, development and capital expenditure in order to retain competitiveness.
The planned acquisition of second-hand equipment poses operational, efficiency, and financial risks.
Need to meet strict security requirements to register with payment networks like MasterCard and RuPay, non-compliance may lead to revoked registrations.
The handling of cardholder data makes the company a target for cyber-attacks. Without proper resource allocation for IT security, the company risks transaction errors, inefficiencies, and potential customer loss.
Under the trademark agreement, the Company is obligated to pay user royalties and management fees of 1.75% of net turnover or max Rs 40 crore annually for use of Manipal Group Trademark.
In FY2026, 49.56% of total purchases were spent on imported raw materials facing risks such as geopolitical issues, regulatory changes, and currency exchange rates.
The payment cards sector faces challenges such as include increased regulation, costly data protection compliance, a shift to digital payments, technological upgrades, geopolitical risks etc.
The rise of cardless payments further threatens the payment card market.
The cheque book market in India is declining due to the shift to digital payments, government initiatives for a cashless economy, changing consumers preferences etc.
Changes in policy or budgets may harm prospects and opportunities in future government projects.
Valuation
The financial performance of the company has been flattish during last two years. The revenue growth has improved to 6% to Rs 1326.75 crore in FY2026 from moderate 1% growth in FY2025. The net profit increased 13% to Rs 282.21 crore in FY2025, driven by exceptional income of Rs 110 crore, but declined 10% to Rs 253.46 crore in FY2026 in the absence of exceptional income. However, the company has exhibited healthy improvement in the operating profit margin from 26.86% in FY2024 to 30.87% in FY2025 and further higher to 32.11% in FY2026. ROE has been strong at 29.35% for FY2026.
EPS on post-issue equity for FY2026 works out to Rs 11.0. At the price band of Rs 332 to Rs 339, P/E works out to 30.2-30.8 times of EPS for FY2026.
The post issue m-cap for the company out to Rs 8858 crore at upper price band.
The listed peer of the company, Seshaasai Technologies is trading at 25.6 times EPS for FY2026. Seshaasai Technologies was slightly ahead MPI in terms of revenues at Rs 1441 crore (down 1%) for FY26, but its net profit was lower at Rs 240.01 crore (up 10%) with low OP margins of 26.33% and RoE of 16.83% for FY2026.
| Manipal Payment and Identity Solutions: Issue highlights | |
| For Fresh Issue Offer size (in share crore) | |
| - On lower price band | 0.96 |
| - On upper price band | 0.94 |
| Offer size (in Rs crore) | 320.00 |
| For Offer for Sale Offer size (in Rs crore) | |
| - On lower price band | 474.99 |
| - On upper price band | 485.00 |
| Offer size (in no of shares crore) | 1.43 |
| Price band (Rs) | 332-339 |
| Minimum Bid Lot (in no. of shares) | 44 |
| Post issue capital (Rs crore) |
|
| - On lower price band | 46.40 |
| - On upper price band | 46.36 |
| Post-issue promoter & Group shareholding (%) | 53.92 |
| Issue open date | 09-09-2026 |
| Issue closed date | 11-09-2026 |
| Listing | BSE, NSE |
| Rating | 40/100 |
| Manipal Payment and Identity Solutions: Financials | |||||
|
| 2303 (12) | 2403 (12) | 2503 (12) | 2603 (12) | |
| Income from Operations | 902.17 | 1247.52 | 1256.07 | 1326.75 | |
| OPM (%) | 17.78 | 26.86 | 30.87 | 32.11 | |
| OP | 160.41 | 335.12 | 387.73 | 425.99 | |
| Other Income | 18.31 | 20.45 | 21.04 | 29.84 | |
| PBDIT | 178.72 | 355.57 | 408.77 | 455.83 | |
| Interest (Net) | 11.83 | 20.40 | 109.12 | 47.91 | |
| PBDT | 166.89 | 335.17 | 299.65 | 407.92 | |
| Depreciation / Amortization | 35.35 | 34.82 | 55.19 | 56.26 | |
| PBT | 131.54 | 300.35 | 244.46 | 351.67 | |
| Share of Profit/(Loss) from Associates/JV | 0.00 | 0.00 | 0.00 | 0.00 | |
| PBT before EO | 131.54 | 300.35 | 244.46 | 351.67 | |
| EO | 0.00 | 0.00 | 110.00 | -2.41 | |
| PBT after EO | 131.54 | 300.35 | 354.46 | 349.26 | |
| Tax Expenses | 13.87 | 51.18 | 72.24 | 95.80 | |
| PAT | 117.67 | 249.17 | 282.21 | 253.46 | |
| Minority Interest | 0.00 | 0.00 | 0.00 | 0.00 | |
| Net Profit | 117.67 | 249.17 | 282.21 | 253.46 | |
| EPS * | 5.1 | 10.7 | 8.4 | 11.0 | |
| *EPS annualized on post issue equity capital of Rs 46.36 crore of face value of Rs 2 each excluding extraordinary items and relevant tax | |||||
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