The Pai family-owned Manipal Tech is seeking to raise around Rs 1,000 crore to finance the Manipal Group
Manipal Technologies (MTL), the preeminent manufacturer of banking and smart cards in India, is exploring the infusion of a financial partner into its longstanding Pai family-owned business. The valuation for this initiative is anticipated to be in the range of Rs 4,000-4,200 crore ($500 million), as per a report by the Economic Times.
Seeking to raise approximately Rs 1,000 crore ($100-125 million), the Pai family is looking to fund the Manipal Group business, which had its origins as the back office of Syndicate Bank in 1941.
The proposed transaction allows a partial exit for family members owning 20 per cent of MTL. Alongside the secondary stake sale, 5-10 per cent of primary shareholding will be sold for expansion, as per the report.
MTL engages in printing, transaction facilitation, marketing, branding, and communication for consumer-oriented sectors, including retail banking, telecom, financial services, consumer goods, among others. It manages government business as well, leveraging over two decades of experience in the security data printing industry.
Gautham Pai, serving as the executive chairman of MTL, joined the family business in 1997. He is the son of Satish Pai. Ranjan Pai, the son of Ramdas Pai, holds the position of group chairman at Manipal Hospitals.
The majority of MTL's revenue is generated by its subsidiary, MCT Cards & Technology. MCT's manufacturing and personalization facility holds certifications from Visa, MasterCard, RuPay, Diners, Smart Card Operating System for Transport Application (SCOSTA), and Payment Card Industry Data Security Standard (PCI DSS).