Manipal Payments and Identity Solutions Limited (MPISL) has recently filed a draft red herring prospectus (DRHP) for its initial public offering i.e. IPO. This company is the largest manufacturer of payment and identity cards in India. According to sources, the company is planning to raise about Rs 1200 crore through this IPO. After this IPO, the valuation of the company is expected to be around Rs 12,000 crore. The company had filed DRHP confidentially on June 28, which includes the sale of primary and secondary shares. Promoters’ stake will be 51% after IPO MPISL promoters Gautam Pai Family owns 60% stake in the company, while the remaining 40% stake is held by institutional and public shareholders like Nuvama Wealth Management. Sources said that after the IPO, the promoters want to maintain their stake at 51%. A large part of the proceeds from the IPO will be used to repay the debt of a promoter-level unit. In April this year, Moneycontrol reported that promoter companies Manipal Technologies Limited (MTL) and Manipal Media Networks Limited sold their 6% stake in MPISL to Nuevama. Apart from this, 1.5% stake was sold to some family offices. The money raised from these sales is being used to repay foreign currency loans taken from BlackRock and Hong Kong asset management company SC Lowy Financial Limited. MPISL makes credit-debit, smart and government ID cards. MPISL makes cards like credit, debit, smart and government ID and its customers include big government and private banks, fintech companies and government departments. The company’s manufacturing plants have been certified by Visa, MasterCard and Europay. Apart from this, the company has technical partnerships with Thailand’s Chan Wanich Security Printing and Colombia’s Thomas Gregg and Sons. Before the IPO, the company has taken steps to strengthen its board and governance system. Recently, Binoy Parikh was appointed as an independent director. The company is preparing to get listed on the stock market this year. The company is preparing to get listed on the stock market this financial year. Given the strong market position and large customer base of MPISL, investors will be keeping an eye on this IPO. This IPO is not only a big step for the company but will also be a major event in India’s rapidly growing payment and identity solutions sector.
