Manipal Payment and Identity Solutions Limited IPO Analysis

1. IPO Snapshot

2. IPO Details

3. Issue Reservation

4. IPO Lot Size

5. About the Company

Incorporation & Evolution

Manipal Payment and Identity Solutions Limited was incorporated as MCT Cards & Technology Private Limited on February 19, 2008, in Karnataka. The Company was converted into a public limited company in 2023, renamed MCT Cards & Technology Limited, and subsequently renamed Manipal Payment and Identity Solutions Limited in 2024.

What the Company Does

The Company provides solutions across four key business areas:

Business Scale

As disclosed in the RHP:

• 300+ customers served in Fiscal 2026
• 10 facilities across India
• 1,800+ employees as of March 31, 2026
• Estimated 36.4% market share in India's credit-card issuance market in Fiscal 2026
• Estimated 30.9% market share in India's debit-card issuance market in Fiscal 2026

The market-share figures are based on the Frost & Sullivan (F&S) Report cited in the RHP.

Key Acquisitions

The Company has expanded its business through acquisitions:

2024 — Variable Data Printing & Secure Logistics

The Company acquired the variable data printing and secure logistics division of Manipal Technologies Limited, effective March 31, 2024, for a purchase consideration of ₹550.00 million.

2025 — Revenue Assurance Business

With effect from April 1, 2025, the Company acquired the Revenue Assurance Business, covering smart tagging and IoT solutions, tax stamps, holograms, coated products and other security-printed products, for ₹3,600.00 million.

Business Strategy

The key strategies disclosed in the RHP include:

1. Increase global payment-card market share
2. Expand the metal-card portfolio
3. Strengthen its market position in India
4. Expand bundled offerings
5. Add personalization bureaus
6. Develop new card formats and technology solutions

Industry Overview

The Company's industry discussion is primarily based on the Frost & Sullivan report commissioned for the Offer.

India's Cards Issuance Market

India's total cards issuance market — including debit, credit, prepaid and government/smart ID cards — is projected to expand significantly:

Key Industry Growth Areas

The RHP highlights two areas with particularly strong projected growth:

Metal Cards

• Projected issuance of 10.5 million units by Fiscal 2030

Credit Cards

• Projected issuance of 123 million units by Fiscal 2030

Industry Outlook

The RHP notes that payment-card penetration in India remains below that of selected international markets, indicating the potential for continued expansion in card issuance and related payment solutions.

6. Restated Financial Information

All amounts are ₹ million unless otherwise stated.

7. Key Performance Indicators

8. IPO Valuation

9. Peer Comparison

10. Shareholding & Capital Structure

11. Objects of the Offer

11. Key Risks Highlighted in the RHP

Customer Concentration

Risk: Dependence on the largest, top five and top 10 customers.

Disclosure: Top 10 customers contributed 58.67%, 60.98% and 62.51% of revenue from operations in FY2026, FY2025 and FY2024, respectively.

Potential Impact: Loss or reduction of business from key customers could adversely affect revenue, financial condition and results of operations.

Supplier Concentration

Risk: Dependence on the largest, top five and top 10 suppliers.

Disclosure: Top 10 suppliers represented 56.05%, 62.29% and 59.69% of total purchases in FY2026, FY2025 and FY2024, respectively.

Potential Impact: Supply disruptions, quality issues or higher material costs could affect production and financial performance.

Product Concentration

Risk: Dependence on manufactured cards.

Disclosure: Cards manufactured by the Company accounted for 57.25%, 58.40% and 59.61% of revenue from operations in FY2026, FY2025 and FY2024, respectively.

Potential Impact: Adverse developments in the card vertical could affect business, cash flows and results.

Promoter / Guarantee

Risk: Risks associated with promoter guarantees relating to a Promoter Group entity.

Disclosure: The RHP describes Bank of Baroda, New York Branch guarantees of USD 80.061 million and USD 55.486 million, an invoked guarantee and pending proceedings before the Karnataka High Court.

Potential Impact: An adverse outcome may result in liabilities and affect reputation, operations or financial condition.

Debt / Liquidity

Risk: Promoter personal guarantee supporting Company borrowings.

Disclosure: Tonse Gautham Pai provided a personal guarantee for Company borrowings of ₹900.00 million as of March 31, 2026. The RHP notes one invocation in FY2022.

Potential Impact: Revocation could lead to a requirement for alternative guarantees or cancellation/repayment of facilities.

Capital Expenditure

Risk: Risks associated with the acquisition of second-hand equipment.

Disclosure: ₹2,384.26 million of Net Proceeds is proposed for capital expenditure, including new and second-hand equipment. The stated remaining lives of second-hand equipment range from 2.93 to 14.90 years.

Potential Impact: Condition, useful life, maintenance or efficiency of second-hand equipment may differ from expectations and affect output or costs.

Regulatory

Risk: Past RBI non-compliance and regulatory action.

Disclosure: The RHP discloses past delays in RBI reporting and refund requirements. The RBI Compounding Authority compounded admitted contraventions upon payment of ₹1.59 million.

Potential Impact: Future regulatory proceedings or actions could result in penalties or other adverse consequences.

Related Parties

Risk: Related party transaction exposure.

Disclosure: Related party transactions were ₹2,019.46 million, ₹12,071.24 million and ₹1,038.97 million in FY2026, FY2025 and FY2024, respectively.

Potential Impact: Defaults or non-recovery relating to loans, advances, guarantees or securities involving related parties could affect financial condition.

Imported Inputs

Risk: Dependence on imported raw materials.

Disclosure: Imported raw materials represented 49.56%, 43.70% and 51.70% of total purchases in FY2026, FY2025 and FY2024, respectively.

Potential Impact: Import disruptions, foreign exchange movements or supply constraints could affect costs and operations.

Operations

Risk: Concentration of manufacturing operations in Karnataka.

Disclosure: Five of the Company's 10 facilities are located in Karnataka, including both card manufacturing facilities.

Potential Impact: Regional disruption, natural calamities or policy changes could affect operations and require additional expenditure or strategy changes.

Capacity Utilisation

Risk: Under-utilisation of manufacturing facilities.

Disclosure: FY2026 utilisation was 32.19% for cheque-leaf printing and 36.73% for secure-solutions offset printing.

Potential Impact: Lower utilisation could adversely affect business, results of operations and financial condition.

Offer / Market

Risk: No prior public market for the Equity Shares and uncertainty about post-listing trading.

Disclosure: There has been no formal market for the Equity Shares, and active or sustained trading may not develop.

Potential Impact: The market price may fluctuate and adequate liquidity may not develop after listing.

12. Litigation, Regulatory Matters & Contingent Liabilities

13. Registrar

14. Lead Manager(s)

15. Company Contact Details