Manipal Payment and Identity Solutions Ltd is set to launch its initial public offering (IPO), with the company planning to raise up to Rs 400 crore through a fresh issue of shares, alongside an offer for sale (OFS) of up to 1.75 crore shares by promoter Manipal Technologies Ltd. The price band for the IPO has not been disclosed yet.
Manipal Technologies, which holds a 62.10% stake in the company before the offer, will be the selling shareholder under the OFS component.
Of the Rs 400 crore fresh issue, Rs 287.14 crore has been earmarked for the purchase and installation of new and second-hand equipment. The capex is planned to be deployed across FY26-FY28. The remaining proceeds will be used for general corporate purposes.
What Does Manipal Payment and Identity Solutions Do?
Manipal Payment and Identity Solutions provides payment, identification, secure and smart-tagging/IoT solutions to customers in India and overseas. Its customer base includes banks, fintech companies, non-banking financial companies (NBFCs) and government entities.
The company's product portfolio includes payment cards, cheque books, NFC and QR solutions, payment wearables, driving licences, registration certificates and identity cards. It also provides secure logistics, holograms, RFID and anti-counterfeiting solutions, giving the company exposure to the payments, identification, security and IoT segments.
Financial Performance
The company has delivered a significant improvement in profitability over the past three financial years. Revenue increased from Rs 902.17 crore in fiscal 2023 to Rs 1,247.52 crore in fiscal 2024 and Rs 1,256.07 crore in fiscal 2025. While revenue growth was largely flat in fiscal 2025, profitability continued to improve.
Ebitda increased from Rs 178.72 crore in fiscal 2023 to Rs 355.57 crore in fiscal 2024 and further to Rs 408.77 crore in fiscal 2025. The Ebitda margin expanded substantially from 19.42% in fiscal 2023 to 28.04% in fiscal 2024 and 32.01% in fiscal 2025.
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Profit rose from Rs 117.67 crore in fiscal 2023 to Rs 249.17 crore in fiscal 2024 and Rs 282.21 crore in fiscal 2025. Investors should note that the company's fiscal 2025 profit included an exceptional gain of around Rs 110 crore.
The gain was related to the disposal of investments in Primacy Industries to promoter Manipal Technologies Ltd. Therefore, the reported FY25 profit received a boost from this one-off item and may not entirely represent the company's recurring earnings performance.
For quarter ended June fiscal 2026, the company reported revenue of Rs 283.52 crore, while Ebitda stood at Rs 95.33 crore. Ebitda margin improved further to 32.57%. Profit stood at Rs 33.93 crore during the quarter.
At the same time, the company's borrowing position has improved significantly. Total borrowings, which stood at Rs 472.87 crore in fiscal 2025, fell sharply to just Rs 0.22 crore as of June 30, 2025.
Cards Remain The Key Revenue Driver
Cards manufactured and traded remain the company's largest business segment, accounting for 58.40% of FY25 revenue. Tax stamps, holograms, thermal and RFID products contributed 12.62% of revenue, while other services accounted for 10.69%.
Cheque books, collaterals and identity cards contributed 8.82%, followed by other products at 5.11% and card personalisation at 4.37%. The significant contribution from cards highlights the company's strong exposure to the payments ecosystem, although it also indicates continued dependence on the card manufacturing business.
Key Risks To Watch
Customer concentration remains an important risk for investors. The company's top 10 customers contributed 60.98% of FY25 revenue, highlighting its dependence on a relatively concentrated customer base.
Supplier concentration is another factor to monitor. The top 10 suppliers accounted for 62.29% of the company's raw-material purchases in fiscal 2025. Any disruption involving key suppliers or significant changes in raw-material costs could impact the company's operations and margins.
The company's high dependence on cards is also a key watch-out. Cards manufactured and traded accounted for 58.40% of FY25 revenue, despite the company's presence across identification, RFID, holograms, IoT and anti-counterfeiting solutions.
What Investors Should Watch
The IPO provides investors with exposure to a company operating across payment, identification and secure technology solutions, with banks, fintechs, NBFCs and government entities forming a key part of its customer base.
The sharp expansion in Ebitda margins and significant reduction in borrowings are positives. However, investors will need to assess the valuation once the IPO price band is announced, particularly in light of the exceptional gain included in fiscal 2025 profit.
The planned deployment of Rs 287.14 crore towards equipment purchases and installation across fiscal 2026-fiscal 2028 will also be important to track, as the success of the planned capex will determine the company's ability to sustain growth and profitability.
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