Manipal Payment and Identity Solutions Limited, a Manipal Group company providing payment and identity solutions, has filed its Draft Red Herring Prospectus (DRHP) for an initial public offering. The issue is scheduled to open on 09 September 2026 and close on 11 September 2026, with listing expected on 17 September 2026. The company aims to raise ₹238.43 crore through a fresh issue to fund capital expenditure on equipment and general corporate purposes.

About the Company

Incorporated on 19 February 2008 and headquartered in Karnataka, Manipal Payment and Identity Solutions Limited operates as a leading provider of payment solutions, identification solutions, secure solutions, and smart tagging & Internet of Things (IoT) solutions. The company serves banks, fintechs, NBFCs, and governments across domestic and international markets. It operates 10 manufacturing and processing facilities across India, including card manufacturing units, personalization bureaus, cheque printing facilities, central card processing centers, and a Smart Tagging & IoT Solutions facility.

The company’s product portfolio includes payment cards (credit, debit, prepaid), cheque solutions, NFC/QR codes, payment-enabled wearables, digital automation solutions, driving licenses, registration certificates, national identity cards, transit management solutions, secure printing, and IoT-enabled tagging. In FY2026, the company produced 13.54 million credit cards and 72.66 million debit cards. A notable milestone was the launch of India’s first rPVC RuPay card in 2024.

Financial Performance

The company reported steady revenue growth over the last three fiscal years. Revenue from operations increased from ₹1,247.52 crore in FY2024 to ₹1,326.75 crore in FY2026. Total profit stood at ₹253.46 crore in FY2026, with a Profit Before Tax (PBT) of ₹349.26 crore. The balance sheet showed significant deleveraging, with total liabilities reducing from ₹1,105.42 crore in FY2025 to ₹369.00 crore in FY2026, while total equity surged to ₹791.90 crore.

Why the Company Is Raising Funds

The proceeds from the fresh issue will be utilized for two primary objects:

• Capital Expenditure on Equipment: ₹238.43 crore will be used for the purchase and setup of new and second-hand equipment at various facilities, including card manufacturing units, personalization bureaus, cheque printing facilities, central card processing centers, and Smart Tagging & IoT Solutions facilities. This aims to expand capacity and support new product lines.
• General Corporate Purposes: The balance funds will be used for strategic initiatives, funding growth opportunities, acquisitions, brand building, payment for raw materials, lease expenses, employee-related expenses, insurance, repairs and maintenance, and other ordinary business purposes.

Business Strengths

• Market Leadership: The company holds an estimated ~36.40% market share in credit card issuance and ~30.90% in debit card issuance in India (FY2026). It is among the largest payment card manufacturers globally.
• Diversified Customer Base: It serves over 300 customers, including 22 private banks, 12 public sector banks, 11 small finance banks, and 78 co-operative banks. In FY2026, 211 customers (61.34%) had been serviced for more than five years.
• Innovation and Certification: The company launched India’s first rPVC RuPay card in 2024. Its facilities hold Mastercard certification for over 16 years, RuPay certification for over 9 years, and PCIDSS Level 1 Version 4.0.1 certification.
• Experienced Management: Backed by The Manipal Group, which commenced operations in 1948, the company employs over 1,800 specialists in IT infrastructure, card production, and technical operations.

Key Risks

• Customer Concentration: The top 10 customers accounted for 58.67% of revenue from operations in FY2026. Loss of key customers could materially affect business performance.
• Revenue Concentration: Cards represented 57.25% of revenue from operations in FY2026. Adverse developments in this vertical could impact overall results.
• Supplier Concentration: Top 10 suppliers accounted for 56.05% of total purchases in FY2026. Import dependency stands at 49.56% of total purchases.
• Cybersecurity Risk: Handling sensitive cardholder data makes the company a potential target for cyber-attacks, which could adversely affect operations.
• Contingent Liabilities: As of 31 March 2026, contingent liabilities amounted to ₹1,422.08 million, including central excise and customs duty matters.

Important IPO Dates

• IPO Opening Date: 09-Sep-2026
• IPO Closing Date: 11-Sep-2026
• Allotment Date: 15-Sep-2026
• Listing Date: 17-Sep-2026

Offer Details

• Fresh Issue Size: ₹238.43 Crore (Equipment CapEx tranche) + General Corporate Purposes
• Offer for Sale: Not Available
• Price Band: Not Available
• Lot Size: Not Available

Bottom Line

Manipal Payment and Identity Solutions emerges as a market leader in India’s payment card manufacturing space with strong customer relationships and a diversified product portfolio. The company’s recent deleveraging strengthens its balance sheet ahead of the IPO. Investors should note the high concentration risk in both customers and revenue sources, as well as contingent liabilities, while evaluating the growth potential driven by capital expenditure in equipment and expanding international presence.