IPO Alert! Payment Card Giant Files for Big Rs 400 Cr Launch - Are You Ready?

Manipal Payment and Identity Solutions, a prominent Indian payment card manufacturer, has officially filed its Updated Draft Red Herring Prospectus (UDRHP) with the Securities and Exchange Board of India (SEBI) on November 10. This filing marks a significant step towards its Initial Public Offering (IPO). The company proposes to raise Rs 400 crore by issuing new shares. Additionally, its promoter, Manipal Technologies, will offload up to 1.75 crore equity shares through an offer-for-sale (OFS) mechanism. In a strategic move, the company may also consider raising up to Rs 80 crore in a pre-IPO funding round before the formal IPO launch. SEBI had previously granted approval for the confidential DRHP on September 2, enabling this subsequent filing.

At its last share transfer price of Rs 300.11 in June, Manipal Payment, which offers payment, identification, secure tagging, and IoT solutions to banks, fintechs, and government entities, was valued at over Rs 7,000 crore. The Rs 287.1 crore from the fresh issue proceeds is earmarked for purchasing and setting up new and used equipment across its facilities in Karnataka, Chennai, Noida, Navi Mumbai, and Chhattisgarh. The remaining funds will support general corporate purposes. Promoters hold a 62.65% stake, with public shareholders owning the rest. For the quarter ended June 2025, the company reported a profit of Rs 33.9 crore on revenues of Rs 283.5 crore. Its profit grew 13.3% to Rs 282.2 crore in fiscal 2025, while revenue saw a marginal increase to Rs 1,256 crore. Motilal Oswal Investment Advisors, Axis Capital, ICICI Securities, IIFL Capital Services, and Nuvama Wealth Management are the merchant bankers managing the IPO.

Impact: The filing of an IPO by a key player like Manipal Payment and Identity Solutions can invigorate the primary market and attract investor interest towards the payment and fintech sectors. It signals potential growth and investment opportunities, possibly influencing related stocks and the overall market sentiment for IPOs.

Impact rating: 6/10

Difficult terms: * **Updated Draft Red Herring Prospectus (UDRHP)**: A preliminary filing document submitted to SEBI by a company planning an IPO, containing comprehensive details about its business, financials, risks, and fundraising plans, with updates incorporated from the initial draft. * **SEBI (Securities and Exchange Board of India)**: The primary regulator of the securities market in India, overseeing the issuance of securities and protecting investor interests. * **Offer-for-Sale (OFS)**: A method where existing shareholders sell their stake to the public, rather than the company issuing new shares. The proceeds go to the selling shareholders. * **Pre-IPO Round**: A fundraising activity where a company sells shares to select investors before its public offering (IPO), typically to meet early funding needs. * **Internet of Things (IoT)**: A network of interconnected physical devices embedded with sensors, software, and other technologies that enable them to collect and exchange data over the internet. * **Fintechs**: Companies that use technology to improve and automate the delivery and use of financial services. * **Non-Banking Finance Companies (NBFCs)**: Financial institutions that provide banking-like services but do not hold a banking license. * **Merchant Bankers**: Financial advisors who help companies with capital raising activities, including managing IPOs.