Manipal Payment IPO: Issue subscribed 10% so far on Day 1; GMP at 10%

Fresh updates from the financial markets indicate that Manipal Payment & Identity Solutions has opened its initial public offering (IPO) today, with the offering receiving 10 percent subscription as of 12:30 pm on September 9, as per the NSE data.

The Rs 805-crore IPO received bids for 11,13,552 shares against 1,30,60,472 shares on offer. The retail investor portion was subscribed 37 percent, while the non-institutional investor (NII) category received subscription of 6 percent. Bidding for the IPO will stay open until September 11.

The grey market premium (GMP) for Manipal Payment & Identity Solutions stood at around 10 percent, according to Investorgain. The GMP is an unofficial indicator of market sentiment and does not guarantee the stock-exchange debut price or returns.

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The Rs 805-crore IPO comprises a fresh offering of shares worth up to Rs 320 crore and an offer-for-sale (OFS) of shares worth up to Rs 485 crore by promoter Manipal Technologies.

The firm has set the price range at Rs 322-339 per share. At the upper end of the price range, the fresh offering is anticipated to mobilize Rs 320 crore.

Ahead of the IPO, the firm boosted Rs 362.25 crore from 23 anchor market participants. On September 8, Manipal Payment allocated 1.06 crore equity shares to anchor market participants at Rs 339 apiece.

Among the anchor market participants, 35.1 lakh shares were subscribed by 16 schemes across four domestic mutual fund houses — Motilal Oswal AMC, Baroda BNP Paribas Mutual Fund, ITI Mutual Fund and Groww Mutual Fund.

Edelweiss Life Insurance Firm invested Rs 10.01 crore for 2.95 lakh shares, while Abakkus Asset Manager, founded by Sunil Singhania, invested Rs 40 crore.

The firm plans to deploy Rs 238.4 crore from the fresh offering towards purchasing and setting up new and second-hand equipment at various facilities.

These include its card manufacturing facility, personalisation bureau and cheque printing facility, central card processing centres, and Smart Tagging and IoT Solutions facility. The remaining funds will be allocated towards general corporate purposes.

Motilal Oswal Investment Advisors, Axis Capital, ICICI Securities, IIFL Capital Services and Nuvama Wealth Management are the merchant bankers to the offering.

Incorporated in 2008, Manipal Payment & Identity Solutions is part of the Manipal Group and provides payment, identification, secure solutions, smart tagging and Internet of Things (IoT) solutions.

Its customers include banks, fintech firms, non-banking financial firms and government entities across India and international markets.