Manipal Payment IPO: Analysts say 'subscribe' for listing gains; GMP at 10%

Manipal Payment IPO review: Analysts have recommended a 'Subscribe' rating on the issue for listing gains. The current GMP stands at 10 per cent.

Manipal Payment IPO review: Manipal Payment and Identity Solutions IPO opened for subscription today. The company has set a price band of ₹322-339 per equity share for its 805 crore IPO. The three-day IPO subscription window will conclude on September 11 (Friday).

 

According to NSE data at 1 PM, the issue was subscribed 0.10 times in the first three hours. The retail portion was booked 0.45 times, while the non-institutional investors category was subscribed 0.07 times. 

 

Manipal Payment IPO comprises a fresh issue of equity shares aggregating to ₹320 crore, along with an offer-for-sale (OFS) of up to 1.43 crore equity shares worth ₹485 crore by promoter Manipal Technologies.

 

 

Manipal Payment: About 

 

Incorporated in 2008 and headquartered at Manipal, Karnataka, Manipal Payment and Identity Solutions is part of The Manipal Group and supplies payment solutions, identification solutions, secure solutions and smart tagging and IoT solutions to banks, fintechs, NBFCs and governments.

Manipal Payment IPO review 

 

Analysts have shared a mixed view on the issue. IDBI Capital has recommended a 'Subscribe' rating for listing gains, saying India's largest card maker is priced ahead of its only peer, Seshaasai Technologies (the sole listed peer named in the RHP).

 

It was among the largest manufacturers of payment cards globally and in India in FY26, with an estimated 36.4 per cent share of credit card issuance and 30.9 per cent of debit card issuance in India, having billed 13.54 million credit cards and 72.66 million debit cards (F&S).

 

Financials 

 

The company's revenue compounded at 3.14 per cent over FY24-26 to ₹13,267.53 million, while Ebitda margin expanded 556bps from 28.04 per cent to 33.6 per cent and gross margin from 52.3 per cent to 65.51 per cent. It reported PAT of ₹2,534.62 million in FY26, down 10.19 per cent from FY25, but FY25 carried an exceptional gain of ₹1,100 million.

 

It is the highest-ranked Indian and 11th-ranked global card manufacturer by chip card shipments in CY2023 (Nilson), with 344 customers in FY26, including 22 private banks, 12 PSBs, 11 small finance banks, 78 co-operative banks and over 60 fintechs. Average relationship with the top 10 customers is 12.46 years and 72.70 per cent of revenue comes from customers of more than five years' standing.

 

Valuation 

 

At the upper price band, the post-issue market capitalisation is ₹78,581.7 million, valuing the company at 29.4x FY26 basic EPS, 30.1x diluted EPS and 31.0x post-Issue EPS, against 24.97x for Seshaasai Technologies. 

 

"We recommend subscribing to the IPO for the listing gains," the brokerage said.

 

Deven Choksey has also recommended 'Subscribe' for listing gains and prefers to await post-listing evidence before taking a longer-term view.

 

SBI Securities has, however, shared a 'Neutral' view, saying the growth in card volumes remained subdued, with banking cards issued declining from 92 million in FY24 to 86.2 million in FY26. Working capital intensity has also increased, reflected in higher receivable and inventory days.

 

"We assign a NEUTRAL rating to the issue and would like to track the company's performance for a few quarters post-listing," the brokerage said. 

Manipal Payment IPO GMP

 

In the grey market, Manipal Payment's unlisted shares currently trade at ₹372, reflecting a GMP of ₹₹33 or 10 per cent over the upper end of the price band. 

 

Ahead of the IPO, the company had raised ₹362.25 crore from anchor investors. The anchor allocation comprised 36 investors, including mutual funds, insurance companies and foreign portfolio investors.

 

Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.