EFC Limited has successfully completed a significant corporate restructuring effort. The National Company Law Tribunal (NCLT), Mumbai Bench, sanctioned the Scheme of Arrangement between EFC Limited (Transferee Company) and Whitehills Interior Limited (Transferor Company) on November 12, 2025, which became effective on November 28, 2025.

Key Details of the Amalgamation

• The approval was granted under Company Scheme Petition No. CP(CAA)/217/MB/2025 in CA(CAA)/184/MB/2025.
• The sanction follows the provisions of Sections 230 to 232 of the Companies Act, 2013.
• EFC Limited had previously made disclosures regarding this scheme in July 2023, September 2025, and October 2025.
• Umesh Kumar Sahay and persons acting in concert acquired shares in EFC Limited through this scheme of amalgamation.

Impact on Shareholding and Capital Structure

• The promoter group's shareholding increased from 45.44% to 60.44%.
• This increase was achieved through the allotment of 3,77,29,230 equity shares of Rs. 2.00 each.
• The total share capital of EFC Limited rose from Rs. 19.91 crores to Rs. 27.46 crores.

Implications and Next Steps

This NCLT-approved amalgamation marks a crucial milestone in the corporate restructuring process for EFC Limited and Whitehills Interior Limited. The completion of the arrangement has resulted in a significant change in the company's ownership structure and capitalization.

Market Impact

The substantial increase in promoter shareholding and the expansion of the company's capital base may have implications for shareholders and the overall structure of EFC Limited. Investors and stakeholders may want to closely monitor further announcements for a comprehensive understanding of how this arrangement could affect their interests.

Conclusion

The successful completion of the amalgamation between EFC Limited and Whitehills Interior Limited represents a noteworthy development in the company's corporate strategy. With the promoter group now holding a majority stake, stakeholders will be keen to observe any potential changes in the company's direction or operations in the coming months.

EFC Limited has submitted its monitoring agency report for the quarter ended September 30, 2025, detailing the utilization of Rs 242.44 crore raised through a preferential issue of equity shares. CARE Ratings Limited, serving as the monitoring agency, reported no deviation from the stated objectives.

Fund Utilization Breakdown

The company has utilized Rs 144.77 crore across three main objectives:

Unutilized Funds Deployment

The remaining Rs 97.67 crore of unutilized funds have been deployed as follows:

• Rs 80.00 crore in fixed deposits with HDFC Bank, earning a 5.87% return
• Rs 17.67 crore maintained in current accounts of various subsidiaries

Key Observations

Working Capital Utilization

In Q2FY26, EFC Limited (a subsidiary) made a payment of Rs 2.20 crore to Brantford Limited (a related party) for leasing machinery and equipment.

Fund Deployment in Subsidiaries

The monitoring agency noted that the company has parked part of the unutilized proceeds in its subsidiaries' and step-down subsidiaries' current accounts. This practice is not explicitly allowed under the offer document, although the Board had passed resolutions in May 2024, and members approved modifications in an extraordinary general meeting in July 2024 to allow fund utilization in subsidiaries for working capital requirements.

No Timeline Delays

The report indicates no delays in the implementation of the stated objectives, as no specific timelines were mentioned in the offer document.

Corporate Actions

The company also announced that the Hon'ble National Company Law Tribunal, Mumbai Bench, has sanctioned the Scheme of Arrangement between EFC Limited (Transferee Company) and Whitehills Interior Limited (Transferor Company), and their respective shareholders and creditors.

While the fund utilization appears to be progressing as planned, investors should note the company's practice of parking funds in subsidiaries' accounts and monitor future developments closely.

Disclaimer: This article is for informational purposes only and should not be considered as financial advice. Investors are advised to conduct their own research and consult with financial professionals before making investment decisions.