EFC (I) Limited announced the outcome of its Board meeting held on August 18, 2026, which commenced at 04:15 PM IST and concluded at 04:35 PM IST. The Board approved three key items:

1. Acquisition of Ultrafresh Modular Solutions Limited

The Board approved the acquisition of 10,44,783 equity shares constituting 100% of the issued and paid-up capital of Ultrafresh Modular Solutions Limited ("Ultrafresh") on a fully-diluted basis from its existing shareholders ("Sellers") under a share acquisition agreement.

Details of Acquisition:

  • Target Entity: Ultrafresh Modular Solutions Limited, a 51% subsidiary of TTK Prestige Limited
  • Business Description: Established player in India's modular home solutions segment, offering modular kitchens, wardrobes, and other customized modular furniture. The company follows an integrated approach encompassing design, manufacturing, supply, and installation with a focus on quality, functionality, customization, and contemporary design. It owns a manufacturing plant at Nalagarh, Himachal Pradesh.
  • Related Party Status: The acquisition does not fall under related party transaction. None of the promoter/promoter group/group companies have any interest in Ultrafresh. The transaction was done at arm's length.
  • Industry: Modular Furniture Solutions
  • Strategic Rationale: The acquisition is intended to strengthen and further scale the Company's existing furniture manufacturing and Design & Built solutions business. Ultrafresh's business is complementary to EFC's existing furniture strategic presence in North India. Expected to create operational and business synergies, broaden product offerings, enhance manufacturing and distribution capabilities, and provide greater access to the organized modular solutions market.
  • Regulatory Approvals: No specific governmental or regulatory approvals required for the acquisition itself. However, the share issuance requires shareholder approval and applicable stock exchange approvals.
  • Timeline: Completion expected by October 31, 2026. The Company will complete the acquisition by allotting equity shares through a preferential issue within 15 days from the date of passing of the shareholders' resolution, or within 15 days from receipt of last regulatory approval if pending.
  • Consideration: Share swap arrangement. The Company will issue up to 19,99,996 equity shares as consideration for equity shares of Ultrafresh.
  • Cost of Acquisition: ₹53,99,98,920 (Rupees Fifty Three Crore Ninety Nine Lakh Ninety Eight Thousand Nine Hundred and Twenty) for 100% stake of Ultrafresh on fully diluted basis.
  • Shareholding Acquired: 10,44,783 equity shares representing 100% of the issued and paid-up capital of Ultrafresh on fully-diluted basis.
  • Financial Background of Ultrafresh:
  • Date of Incorporation: December 3, 1992
  • Turnover (in crores):
  • FY 2025-26: ₹36.32
  • FY 2024-25: ₹32.49
  • FY 2023-24: ₹31.20
  • Presence: India

2. Preferential Issue of Equity Shares

The Board approved the issuance of up to 19,99,996 equity shares of the Company of face value of ₹2 each to the Sellers at a price of ₹270 per equity share. This represents a premium of ₹268 per equity share. The total issue size aggregates to ₹53,99,98,920.

The shares will be issued for consideration other than cash (utilized towards discharge of consideration for acquisition of 100% stake in Ultrafresh) on a preferential issue basis, subject to shareholder and regulatory approvals.

The price of ₹270 per share was determined in accordance with the provisions of the Companies Act, 2013 and SEBI ICDR Regulations.

Valuation Support:

  • The Board considered valuation report and share swap valuation report determining the swap ratio issued by Mr. Mukesh Kumar Jain, IBBI Registered Valuer
  • Further supported by fairness opinion provided by Rarever Financial Advisors, a SEBI registered Category-I Merchant Banker
  • Independent fair valuation of the Company carried out by Deloitte Touche Tohmatsu India LLP

Investors: The preferential issue will be made to the following non-promoter entities (as per Scheduled-A):

1. TTK Prestige Limited

2. Dhruv Dinesh Trigunayat

3. Priya Trigunayat

4. D Sharma & Sons (HUF)

5. Rahul Mangilal Jain

6. Pranav Malhotra

7. Aruna Sharma

8. Nishi Sharma

9. Sonal Ravikumar Mehta

3. Postal Ballot for Shareholder Approval

The Board approved conducting a Postal Ballot for seeking shareholder approval for the proposed preferential issue of equity shares to the sellers.