Manipal Tech, India's largest banking & smart cards manufacturer, looks to raise Rs 1,000 cr

economictimes.indiatimes.com:

Manipal Technologies (MTL), the largest manufacturer of banking and smart cards in India, plans to bring in a financial partner into the eight-decade-old, Pai family-owned business at a valuation of around ₹4,000-4,200 crore ($500 million), multiple people aware of the initiative told ET.

The Pai family is seeking to raise about ₹1,000 crore ($100-125 million) for the Manipal Group business that began as the back office of Syndicate Bank in 1941.

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Initially, this proposed transaction will give an exit to a few minority shareholders — family members who own about 20% stake in the parent company MTL. Besides the secondary stake sale, about 5-10% primary shareholding will be sold to meet expansion plans, sources aware of the initiative told ET.

Investment bank Rothschild is mandated to run the stake sale process. A few private equity funds have been sounded out, too, said sources.

MTL is in the business of printing, facilitating secure transactions, marketing, branding and communication for consumer-oriented industries such as retail banking, telecom, education, publishing, consumer goods and retail, financial services, aviation and transport. It also handles government business. MTL has an experience of more than two decades in the security data printing business.

MTL's operations are led by Gautham Pai, its executive chairman. He was formally inducted into the family business in 1997. Gautham Pai is the son of Satish Pai, first cousin to Ramdas