NPST used Rs 56.52 crore of Rs 300 crore by September

Network People Services Technologies Limited had used Rs 56.52 crore of the Rs 300 crore raised through its September 5, 2025 preferential allotment by September 30, 2026, leaving Rs 243.49 crore unutilised across three approved objects. NPST reported no deviation or variation in the use of the proceeds.

How much of NPST's preferential-issue money had been used?

NPST had utilised Rs 56.52 crore, or 18.84% of the Rs 300 crore preferential allotment, as of September 30, 2026. The balance not yet used was Rs 243.49 crore, calculated from the stated amount raised less total utilisation, more than a year after the funds were raised on September 5, 2025.

The disclosure covers a preferential allotment of 14,46,500 equity shares and was filed under Regulation 32(3) of the Securities and Exchange Board of India, or SEBI, Listing Obligations and Disclosure Requirements Regulations, 2015. The statement was placed before NPST's Audit Committee on November 11, 2026.

The company reported the total amount raised and utilised to four decimal places in the original filing, which converts to Rs 300 crore and Rs 56.52 crore respectively. NPST did not provide an object-by-object timetable for deploying the Rs 243.49 crore that remained unutilised.

How did NPST allocate and use the funds by object?

NPST had allocated the largest share, Rs 170 crore, to accelerating growth through product development, infrastructure enhancement and strategic acquisition, and had used Rs 21.96 crore for that object by September 30, 2026. This left Rs 148.04 crore for that approved purpose, the largest remaining allocation among the three categories.

Global expansion and brand building received an original allocation of Rs 60 crore, of which NPST had used Rs 11.19 crore. The unused amount for this object was Rs 48.81 crore, while the filing did not separate spending on global expansion from spending on brand building.

General corporate purpose, including fundraising and issue expenses, had the highest reported utilisation at Rs 23.37 crore. This exceeded the Rs 21.96 crore deployed for product development, infrastructure enhancement and strategic acquisition, despite the latter having an allocation Rs 100 crore larger.

Did NPST report any change in the approved use of proceeds?

NPST reported no deviation or variation in the use of preferential-issue funds as of September 30, 2026. Each of the three original objects was marked not applicable for modified object and modified allocation, while the amount of deviation or variation for the quarter was recorded as nil.

The filing defines deviation or variation as a change in the objects or purposes for which funds were raised, a difference in the amount actually used against the originally disclosed amount, or a change in terms of a fundraising contract. On NPST's stated classification, the Rs 56.52 crore deployed remained within the approved Rs 300 crore allocation framework.

NPST said its Audit Committee had no comments after reviewing the statement on November 11, 2026. CARE Ratings Limited was named as monitoring agency for the preferential allotment, while the field for auditors' comments was marked applicable; the utilisation tables did not set out a separate auditor comment.

What do NPST's September balances show alongside the utilisation filing?

NPST reported consolidated cash and cash equivalents of Rs 59.05 crore at September 30, 2026, down from Rs 277.38 crore at March 31, 2026. Bank balances other than cash and cash equivalents were Rs 209.24 crore at September 30, compared with Rs 32 crore at the March year-end.

Those balance-sheet figures are not a direct measure of unutilised preferential-issue proceeds. The utilisation statement identifies Rs 243.49 crore as not yet used against stated objects, whereas the consolidated financial statements combine cash, deposits, operations, investments, subsidiaries and other transactions without a reconciliation linking every balance to the preferential allotment.

For the half year ended September 30, 2026, NPST reported Rs 195.36 crore of net cash used in investing activities, compared with Rs 41.57 crore in the corresponding half of 2025. The 2026 investing outflow included a Rs 177.24 crore increase in bank balances other than cash equivalents, Rs 22.70 crore of investment purchases and Rs 13.78 crore of fixed-asset and capital-work-in-progress purchases.

What changed from the prior corresponding period?

NPST recorded Rs 300.01 crore of proceeds from issue of equity shares in the half year ended September 30, 2025, compared with Rs 1 lakh in the half year ended September 30, 2026. The comparison places the September 2026 utilisation report after the principal equity fundraising inflow had occurred rather than during a new major equity-raising period.

Cash and cash equivalents at September 30, 2026 were Rs 59.05 crore, compared with Rs 316.86 crore at September 30, 2025. Across the same two half-year periods, net cash used in investing activities increased to Rs 195.36 crore from Rs 41.57 crore, alongside the higher movement into bank balances other than cash equivalents.

NPST operates in a single segment providing software and payment solutions to the banking and finance sector, according to the notes to its September 2026 consolidated results. It therefore did not provide segment-level revenue or profit data that could link the Rs 21.96 crore spent on product development, infrastructure and strategic acquisition to individual business lines.

Conclusion

NPST had deployed less than one-fifth of its Rs 300 crore preferential-issue proceeds by September 30, 2026, with Rs 243.49 crore still unutilised. The largest outstanding amount, Rs 148.04 crore, remained designated for product development, infrastructure enhancement and strategic acquisition, while the company reported no change to its approved objects.

The key unresolved matter is the deployment of the remaining approved allocations, including Rs 48.81 crore for global expansion and brand building and Rs 46.64 crore for general corporate purpose and issue expenses. Future utilisation disclosures and monitoring arrangements involving CARE Ratings Limited will show whether NPST uses those balances within the stated objects or reports any variation.