The company, which is entering the initial public offering (IPO) market with an issue of up to ₹805 crore, is also expanding its manufacturing capacity to support this growth.
“So basically, the company is on a growth year-on-year growth CAGR of around 25%-30%,” Mayank Bhotika, Head-Strategic Finance and Treasury at Manipal Payment and Identity Solutions said. “Which should continue the next 3 to 5 years,” he said.
CAGR is Compound Annual Growth Rate
A key growth driver will be metal cards, which currently contribute around 10% of sales. The company expects this to rise to 25-30% of revenue over the next two years. Management said the shift reflects growing demand for premium cards, particularly as banks look to differentiate their offerings.
“The new game in town is basically PSU banks issuing debit cards…” Bhotika said, pointing to the growing adoption of premium and differentiated card products.
PSU is public sector undertaking
The company has also developed patented technology for metal cards and is exporting these products to developed markets such as the US and UK. Management expects the business to scale significantly as more customers adopt premium card offerings.
Exports are another major opportunity. They currently account for around 15% of revenue, but management expects their contribution to rise to 30-40% over the next two years. Export businesses, along with metal cards, radio frequency identification (RFID) and tax stamps, are expected to be more margin-accretive than the company’s traditional domestic polyvinyl chloride (PVC) card business.
The company plans to use around ₹250 crore of the IPO proceeds for plant and machinery. Its annual card manufacturing capacity has already doubled from 11 crore cards to 22 crore, with utilisation at around 80%.
“We have doubled our capacity from 11 crore to 22 crore cards,” Tonse Gautham Pai, Promoter and Non-Executive Director of the company said, adding that the company expects to move towards manufacturing 16-17 crore cards over the next two to three years.
The expansion could also generate significant revenue from the additional capacity. Management said the company’s businesses typically have asset turns of seven to nine times, with return on capital employed (ROCE) profiles of more than 45-50%. Based on these asset turns; the planned capex could support ₹1,400-1,500 crore of additional revenue over time.
While debit-card usage faces competition from Unified Payments Interface (UPI), the company sees new applications supporting demand. Tap-and-pay cards for metros and other mass-transit systems, as well as government programmes, are opening up new use cases beyond traditional ATM transactions.
Beyond cards, the company is also present in FASTag, e-passports and identity products, including driving licences and Aadhaar-related products. Management sees these businesses as additional growth engines as the company expands beyond its traditional card business.
The company also sees significant room for growth in both domestic and global markets. Management estimates opportunities across domestic PVC cards, metal cards, RFID and tax stamps, as well as global exports, over the next three to five years.
“Basically, the company has been in the domestic market, and the seeds were planted for the global market,” Pai said, highlighting the shift towards a larger international business.
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The company said its recent revenue growth was affected by a one-time post-Covid factor, as card replacement cycles were disrupted when cards were not issued during the pandemic. With capacity now significantly higher and growth businesses scaling, management expects the business to move back towards its targeted growth trajectory.
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