Network People Services Tech Limited (NPST) has issued a corrigendum to its Extraordinary General Meeting (EGM) notice, providing important updates and corrections regarding its proposed preferential issue of equity shares. The company aims to raise up to Rs. 300.04 crore through this issue, with significant implications for its shareholding structure and future plans.

Key Details of the Preferential Issue

• Issue Size: 14,46,500 equity shares
• Issue Price: Rs. 2,074.00 per share (including a premium of Rs. 2,064.00)
• Total Fundraising: Up to Rs. 300.04 crore
• Approval Date: Board approval on August 4, subject to shareholder approval

Proposed Allottee and Shareholding Impact

Tata Mutual Fund has been identified as the proposed allottee for this preferential issue. The impact on their shareholding is noteworthy:

This significant increase in Tata Mutual Fund's stake underscores the strategic nature of this investment for both parties.

Utilization of Funds

NPST has outlined a clear plan for the utilization of the funds raised:

1. Global Expansion and Brand Building: Rs. 60.00 crore

   • Expand into new segments domestically and globally
   • Establish a strong brand presence
   • Scale sales and marketing efforts

2. Product Development and Strategic Acquisitions: Rs. 170.00 crore

   • Extend product offerings
   • Invest in infrastructure and hardware
   • Pursue strategic acquisitions

3. General Corporate Purposes: Rs. 70.04 crore

   • Includes cost of fundraising and issue expenses

The company plans to deploy these funds over a 24-month period from the date of receiving the funds.

Impact on Promoter Shareholding

The preferential issue will lead to a dilution in the promoter's stake:

Despite this dilution, NPST has confirmed that there will be no change in control post the preferential allotment.

Valuation and Compliance

NPST has obtained a valuation report from Mr. Navin Khandelwal, a SEBI Registered Valuer, dated August 4. The company has also ensured compliance with SEBI regulations, including lock-in periods for the allotted shares and pre-existing shareholdings.

Conclusion

This preferential issue represents a significant move for Network People Services Technologies Limited, potentially accelerating its growth plans in product development, global expansion, and strategic acquisitions. The investment from Tata Mutual Fund could provide not only capital but also strategic value to NPST's future endeavors.

Investors and stakeholders should note that the EGM notice should be read in conjunction with this corrigendum, which is available on the websites of NSE, BSE, and the company's investor relations page.

Network People Services Technologies Limited (NPST) has reported a strong financial performance for the quarter, with significant revenue growth and strategic developments that position the company for future expansion.

Financial Highlights

• Quarterly revenue increased by 25% from Rs 28.00 crores to Rs 35.00 crores
• Net profit rose by 19.7% to Rs 7.19 crores
• EBITDA margin maintained above 30%, despite a slight dip due to higher contribution from the Technology Service Provider (TSP) business

Strategic Developments

Tata Mutual Fund Investment

NPST has received an in-principle commitment from Tata Mutual Fund for a preferential issue of Rs 300.00 crores. This significant investment is expected to provide institutional backing and strategic guidance for the company's growth initiatives.

Global Expansion

The company reported its first dollar-denominated remittance from operations in Africa, marking a milestone in its global expansion efforts. NPST is actively pursuing opportunities in Southeast Asia, Africa, and the Middle East.

Business Expansion

• Secured empanelment with government PSUs
• Obtained a major bill payment order from a large PSU, valued at approximately Rs 2.00 crores
• Added new payment aggregators to expand its ecosystem

Future Outlook

NPST's management has set ambitious targets for the coming quarters:

1. Aims to breach their highest performing quarter by Q3
2. Plans to utilize the fundraising for:
   • Inorganic growth opportunities
   • Expansion of the acceptance ecosystem
   • Global market development

Operational Updates

• Current employee count exceeds 350, with over 100 open positions
• Plans to launch a hosted cloud platform for small to medium-sized banks
• Targeting 100+ tenants for the hosted platform within 24 months

Technology Initiatives

• Implementing AI-driven solutions, aiming to adopt AI for 30% of the workload in tech, product, and operations this year
• Developing new products in IoT and NCMC payments transit
• Expanding the device-as-a-service model for offline business expansion

Management Commentary

Deepak Chand Thakur, Chairman & Managing Director, stated, "We are back on the road track that we have shown last year. The results are only upward from here."

The company expects to maintain its growth trajectory, with management targeting to surpass the previous year's highest-performing quarter by Q3. NPST remains focused on organic growth while exploring strategic inorganic opportunities to enhance its product portfolio and market presence.

As Network People Services Technologies continues to innovate and expand its offerings in the fintech space, the company appears well-positioned to capitalize on the growing digital payments market in India and beyond.