NPST Monitoring Agency Report: Deviation in Use of Preferential Issue Proceeds
Network People Services Technologies Limited's Monitoring Agency Report for Q3FY26 reveals a deviation in the use of ₹3.18 crore from its ₹300 crore preferential issue. The funds, used for rent and salaries, were categorized under General Corporate Purpose, which the agency flagged as undefined. The company maintains these are operational costs.
The deviation is minor in relation to the total funds raised and the company has provided a justification. The unutilized funds are also parked in safe instruments, indicating no immediate financial distress. Therefore, the impact is considered low.
The report highlights a deviation in the utilization of funds, which is a negative point. However, the company's explanation and the relatively small amount of deviation (up to 10% and ₹3.18 crore out of ₹300 crore) prevent a strongly negative sentiment.
Network People Services Technologies Limited has submitted its Monitoring Agency Report for the quarter ended December 31, 2025, concerning the utilization of funds raised through a Preferential Issue of ₹300.00 crore. The report, issued by CARE Ratings Limited, highlights a deviation concerning the use of ₹3.18 crore, which was categorized under General Corporate Purpose (GCP) and included rent and salary payments. The Monitoring Agency noted that these expenses were not explicitly defined in the offer document's GCP category, leading to a deviation of up to 10%.
The company's management, however, has stated that rent and salary payments are routine and essential operational expenditures that fall within the scope of General Corporate Purposes as disclosed in the offer document. They cited that the offer document allowed for utilization towards expenses incidental to carrying on the company's operations. The management also noted that future disclosures would provide enhanced clarity on GCP to avoid interpretational concerns.
During the quarter, the company utilized ₹0.65 crore for Global Expansion and Brand Building, ₹4.28 crore for Accelerating Growth (Product Development, Infrastructure Enhancement & Strategic Acquisition), and ₹3.40 crore for Other General Corporate Purposes, including issue expenses, rent, and salaries. The total unutilized amount stands at ₹291.67 crore, primarily deployed in fixed deposits with ICICI Bank, maturing in January and March 2026.
All objects are on schedule for completion within 24 months from the date of receiving funds, i.e., by September 04, 2027. The report was placed before the Audit Committee and Board on February 11, 2026.
What to do with a filing like this
Network People Services Technologies Limited filed this with the NSE as a statutory disclosure, categorised under other regulatory filings. It is a primary document, not a recommendation, and the desk marks it low impact, the band that almost never moves a portfolio on its own.
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See the model portfoliosA plain-language summary of a public exchange filing by Network People Services Technologies Limited. Read the original for the full detail.