EFC (I) Limited has approved a Scheme of Arrangement to demerge its asset-light managed office solutions business from EFC Limited, its wholly owned subsidiary. The Board of Directors approved the proposal at a meeting held on July 29, 2026, following recommendations from the Audit Committee. This strategic separation aims to isolate the leased commercial premises operations from the asset-intensive real estate holdings, enabling distinct focus and operational efficiency for both entities.

The demerged undertaking, defined as Vertical 1 in the Scheme, operates through leased commercial premises to provide fully serviced premium managed office solutions. In contrast, the remaining undertaking within EFC Limited retains the asset-intensive model operating through owned real estate assets. The transaction is structured to transfer the asset-light business, along with its associated assets and liabilities, to the Resulting Company, EFC (I) Limited. Borrowings and financing arrangements related to asset acquisition will remain with EFC Limited, facilitating independent capital structures for both companies.

Financial data reveals the significance of the demerged segment. As on March 31, 2026, the turnover of the Demerged Undertaking stood at ₹362,06,65,512.32. This figure represents 34.92% of the total consolidated turnover of EFC (I) Limited for the same period. The segregation is expected to optimize vendor and customer management processes, eliminate administrative redundancies, and improve overall operational efficiencies across both entities.

The rationale for the demerger includes enabling EFC Limited to focus exclusively on its asset-intensive managed office solutions business while empowering EFC (I) Limited to leverage its expertise in the asset-light segment. Management stated that the Scheme allows each company to pursue its respective business objectives more effectively. It is also designed to facilitate future growth opportunities for the Resulting Company by consolidating its operational footprint in the asset-light managed office business.

The Scheme does not involve any cash consideration or share exchange ratio, as EFC (I) Limited holds 100% of the paid-up share capital of EFC Limited. Consequently, no change in the shareholding pattern of any of the companies is envisaged. EFC (I) Limited is already listed on BSE Limited and National Stock Exchange of India Limited, and no further listing is sought pursuant to the Scheme.

What the Numbers Show

The demerger isolates a significant revenue stream, with the asset-light business accounting for nearly one-third (34.92%) of the group’s consolidated turnover. By separating this high-turnover, low-asset-intensity vertical from the capital-heavy real estate operations, EFC (I) Limited aims to create clearer financial visibility for investors regarding the performance of its core managed office services versus property ownership returns. The retention of debt with EFC Limited suggests a strategy to align financing costs directly with the underlying physical assets, potentially improving the credit profile of the resulting entities.

Regulatory Approvals Required

The Scheme is subject to requisite statutory and regulatory approvals, including approval from the Hon'ble National Company Law Tribunal, Mumbai. Additional permissions and sanctions from other regulatory authorities may be necessary. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

EFC (I) Limited will host a factory and site visit for investors and analysts on July 14, 2026, in Pune. The interaction is scheduled to take place from 10 A.M. to 5 P.M. as a physical group meeting. This initiative aims to provide stakeholders with an on-ground understanding of the company's operations.

The disclosure was made to BSE Limited and the National Stock Exchange of India Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company specified that no unpublished price sensitive information would be shared during the interaction.

The schedule for the visit is subject to changes based on exigencies concerning the analysts, investors, or the company. Aman Kumar Gupta, Company Secretary, signed the intimation on July 9, 2026.