TCC Concept initiates postal ballot for share split, ₹4,000 crore RPTs
TCC Concept Limited has launched a postal ballot for a 1:5 share split and significant RPTs involving subsidiaries like Pepperfry and Pepcart. The proposals include ₹500 crore in design services from EFC (I) and ₹350 crore in furniture purchases from Ek Design, alongside director remuneration fixes.
*this image is generated using AI for illustrative purposes only.
TCC Concept Limited has issued a postal ballot notice dated July 23, 2026, seeking shareholder approval for a 1:5 equity share split and material related party transactions (RPTs) valued at approximately ₹4,000 crore. The proposals, including the appointment of remuneration for non-executive director Abhishek Narbaria, require voting by members holding shares as of the July 17, 2026 cut-off date. Remote e-voting is open from July 24, 2026, to August 22, 2026, with results expected by August 25, 2026.
Share Split and Capital Structure
The Board of Directors, meeting on July 21, 2026, approved the sub-division of equity shares to enhance liquidity and retail participation. One share with a face value of ₹10 will be split into five shares of ₹2 each. This alteration requires changes to the Capital Clause of the Memorandum of Association (MoA). The total share capital remains unchanged at ₹60 crore authorized and ₹47.53 crore issued.
| Capital Type | Pre-Split Shares | Face Value (₹) | Post-Split Shares | New Face Value (₹) |
|---|---|---|---|---|
| Authorised | 6,00,00,000 | 10 | 30,00,00,000 | 2 |
| Issued & Paid-up | 4,75,28,061 | 10 | 23,76,40,305 | 2 |
Related Party Transactions
The most significant component of the ballot involves omnibus approvals for RPTs between TCC subsidiaries and related entities for FY2026-27. The transactions are deemed material under SEBI LODR Regulations as they exceed prescribed thresholds relative to consolidated turnover.
| Counterparty | Subsidiary Involved | Nature of Transaction | Value (₹ Cr) |
|---|---|---|---|
| EFC (I) Limited | Pepperfry Limited | Design & Build Turnkey Services | 500 |
| Ek Design Industries | Pepperfry Limited | Purchase of Furniture & Fixtures | 350 |
| EFC (I) Limited | Brantford Limited | Design Services & Leasing | 100 |
| EFC Limited | Brantford Limited | Asset Purchase & Leasing | 100 |
| EFC (I) Limited | NES Data Private Ltd | Server Rent & Design Services | 100 |
| EFC Retail Spaces | Pepperfry Limited | Leasing Services & Asset Lease | 100 |
| Pepperfry Limited | Pepcart Logistics | Logistics & Warehousing Services | 100 |
| Ek Design Industries | Pepcart Logistics | Logistics & Warehousing Services | 75 |
These agreements aim to optimize resource utilization and create operational synergies within the group. Pricing is determined based on market benchmarks to ensure arm’s length terms.
Director Remuneration and MoA Changes
Shareholders are also asked to approve the remuneration of Abhishek Narbaria, Non-Executive Director, fixed at ₹3.60 crore plus a performance incentive not exceeding 3% of net profit for FY2026-27. Additionally, the MoA Object Clauses will be altered to explicitly permit business activities in IT solutions, AI, data analytics, logistics, and retail operations, aligning legal frameworks with current operational diversification.
Historical Stock Returns for TCC Concept
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.78% | -9.90% | -18.47% | -40.49% | -40.49% | -40.49% |
How might the 1:5 share split impact TCC Concept's trading volume and retail investor participation in the months following the August 2026 approval?
What are the potential governance risks associated with the ₹4,000 crore omnibus approval for related party transactions, particularly regarding minority shareholder protection?
Could the expansion of MoA Object Clauses to include AI and data analytics signal a strategic pivot away from traditional furniture retail, and what capital investments might follow?
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