Span Divergent deploys Rs 5.79 crore with no deviation

Span Divergent Limited fully utilised the Rs 5.79 crore preferential issue allotted on March 28, 2026 by the quarter ended September 30, 2026, reporting no deviation from its stated objects. Span Divergent allocated the funds to raw cashew nut inventory, operational restart and ramp-up costs, and selective refurbishment for productivity and quality.

How much did Span Divergent raise and when?

Span Divergent raised Rs 5.79 crore through a preferential issue allotted on March 28, 2026. Its statement on deviation or variation, filed for the quarter ended September 30, 2026, identifies the amount raised as Rs 579.36 lakh and says proceeds allocated to the specified objects had been fully utilised during that quarter.

This was a fund-utilisation update rather than a new capital-raising announcement. Span Divergent reported no modification to the original objects and no modified allocation in its September 30, 2026 disclosure. A monitoring agency was not applicable to the preferential issue, according to the format filed by Span Divergent.

The proceeds were allocated across three operating purposes totalling Rs 5.79 crore. The largest allocation was Rs 5 crore for procurement of raw cashew nut, or RCN, inventory, described as providing two to three months of upfront inventory. The remaining Rs 79.36 lakh was assigned to restart and ramp-up costs and selective refurbishment.

Where did Span Divergent deploy preferential-issue proceeds?

Span Divergent disclosed three original objects for the Rs 5.79 crore issue: RCN inventory, commissioning and operational mobilisation, and selective refurbishment. The September 30, 2026 filing says the full amount allocated to these purposes had been utilised without changing the originally stated objects.

The RCN inventory allocation was Rs 5 crore, making it the principal use of the preferential-issue proceeds. Span Divergent described the purpose as procurement of two to three months of upfront raw-cashew inventory. The filing does not provide the quantity of nuts purchased, prices paid, supplier details or a date-by-date payment schedule.

Span Divergent allocated Rs 50 lakh to restart and ramp-up costs, described as commissioning and operational mobilisation. This allocation is separate from the Rs 5 crore inventory provision, distinguishing the costs of restarting and mobilising cashew operations from the procurement of raw material.

The third allocation was Rs 29.36 lakh for selective refurbishment intended to support productivity and quality. The September 30, 2026 filing does not identify equipment, facilities, contractors or completion milestones for this work. It does report a nil deviation or variation amount for each of the three disclosed objects.

Was there any deviation in Span Divergent's use of funds?

No, Span Divergent reported no deviation or variation in its use of preferential-issue proceeds for the quarter ended September 30, 2026. Span Divergent said the Rs 5.79 crore raised in March 2026 had been fully utilised for the specified objects in line with the objects stated in the offer documents.

The September 30, 2026 filing defines deviation or variation as a change in the objects for which funds were raised, a difference between actual use and originally disclosed use, or a change in terms of a contract referred to in a fundraising document. Span Divergent marked the issue as having no deviation or variation under this disclosure.

The original RCN inventory allocation remained Rs 5 crore, while restart and ramp-up retained Rs 50 lakh and refurbishment retained Rs 29.36 lakh. The modified-object field is marked not applicable for all three purposes and the modified-allocation field is nil, so the filing does not indicate a shareholder-approved revision.

Span Divergent's September 30, 2026 filing also marked the format for outstanding defaults on loans and debt securities as not applicable because there was no default. That statement relates to debt-default disclosure rather than the Rs 5.79 crore preferential-issue deployment, but it appears alongside the fund-utilisation statement.

What do Span Divergent's September figures show alongside deployment?

Span Divergent's consolidated inventories were Rs 5.31 crore at September 30, 2026, compared with Rs 1.72 crore at March 31, 2026. The Rs 3.59 crore increase occurred in the period in which Span Divergent completed utilisation of the Rs 5 crore allocation for RCN inventory, although the filing does not attribute the balance-sheet change directly to the preferential issue.

Consolidated cash and cash equivalents were Rs 84.36 lakh at September 30, 2026, down from Rs 6.48 crore at March 31, 2026. The preferential issue was allotted on March 28, 2026, close to the end of the preceding financial year, while the company reported full utilisation by the end of the following half-year.

Consolidated current borrowings stood at Rs 10.45 crore on September 30, 2026, compared with Rs 6.93 crore on March 31, 2026. Total current assets were Rs 19.28 crore at September 30, 2026, against Rs 19.12 crore at March 31, 2026. The filing does not specify how much of the movement in these balance-sheet lines resulted from the preferential-issue proceeds.

The standalone cash-flow statement recorded no proceeds from preferential equity shares in the half-year ended September 30, 2026, compared with Rs 5.68 crore recorded in the year ended March 31, 2026. This reported timing is consistent with the March 28, 2026 allotment and with the September disclosure addressing use of the funds rather than receipt of proceeds.

Conclusion

Span Divergent's filing says the Rs 5.79 crore preferential issue allotted on March 28, 2026 was fully deployed by September 30, 2026 as originally intended. Rs 5 crore was assigned to RCN inventory, Rs 50 lakh to restart and operational mobilisation, and Rs 29.36 lakh to selective refurbishment, with no deviation reported for any of the three objects.

The next disclosed operational matters to watch are the ramp-up covered by the Rs 50 lakh commissioning and mobilisation allocation and the productivity and quality work covered by Rs 29.36 lakh of refurbishment. Span Divergent reported consolidated inventory of Rs 5.31 crore at September 30, 2026, but this filing provides no production, sales or refurbishment-completion target for the cashew operations.