Manipal Payment
IPO Size: Rs. 805 cr
- 40% of IPO is Fresh Issue of Rs. 320 cr (4% dilution) for Rs. 238 cr capex
- 60% IPO is Offer for Sale (OFS) of Rs. 485 cr by promoter (63% holding to reduce to 54%)
Price band: Rs. 322-339 per share
M cap: Rs. 7,858 cr (IPO is 10% of m cap)
IPO Date: Wed 9th Sep to Fri 11th Sep 2026, Listing Thu 17th Sep 2026
Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.
India’s Largest Payment Cards Manufacturer
Manipal Payment and Identity Solutions is an 18-year-old Manipal, Karnataka-headquartered company providing payments, identifications and secure solutions, smart tagging solutions to banks, fintechs, non-banking finance companies, governments. Company is the 11th largest card manufacturer by volume globally but its business is primarily domestic facing, as exports account for barely 7% of revenue.
Product Mix skewed towards Cards
Cards account for close to 60% of company’s Rs. 1,327 cr topline, with cheques and identity cards being 10% and another 10% being tax stamps, holograms and RFID products. Company produced 86 million cards in FY26 - 13.54 mn credit cards and 72.66 mn debit cards, leading to 36% and 31% domestic market share respectively.
It plans Rs.238 cr capex for expansion across business segments, to be spent from IPO proceeds till FY29E, which is quite a substantial capex, given Rs. 179 cr net fixed assets as of 31.3.26.
Flat Financials since FY24
FY26 revenue stood at Rs. 1,327 cr, as against Rs. 1,257 cr for FY24, implying a revenue CAGR of a paltry 2.7%. During this period, volume of card produced declined at 3% CAGR from 92 million in FY24 to 86 mn in FY26, highlighting the growing fear of reduced debit crad usage. Between FY24 to FY26, company’s net profit, thus, remained flat at Rs. 253 cr.
Due to handful of 6-7 players operating in the domestic market, Seshasai Technologies being the sole listed peer, net margin in the business is healthy at 19%. On equity of Rs. 44 cr (face value Rs. 2 each), FY26 EPS stood at Rs. 11.3 for. Company is debt-free with net cash of Rs.260 cr on a net worth of Rs. 791 cr.
Fully Priced IPO
M cap of Rs. 7,858 cr and an Enterprise Value of Rs. 7,600 cr leads to a current year PE multiple of 26x, based on FY27E estimated EPS of Rs. 13. Peer Seshasai Technologies is ruling at a PE of 20x for 17% net margin on Rs. 1,500 cr topline, while CMS Info, though not an exact peer but comparable as it serves BFSI sector, is trading at a PE of 12x for a larger topline of Rs. 2,500 cr and 12% net margin.
Declining card volume, which is company’s cash cow, is a big caution on the business growth and outlook, even though other segments may have future use cases.
