EFC Limited, a company listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), has taken steps to reclassify certain promoters to the public category. This move, initiated on November 14, 2025, marks a significant corporate action for the company.

Application for Reclassification

EFC Limited has submitted applications to both BSE and NSE, seeking the reclassification of two individuals from the 'promoter' category to the 'public' category. This action is in accordance with Regulation 31A of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015.

Details of Promoters Seeking Reclassification

The company has provided details of the promoters seeking reclassification:

Regulatory Compliance

The reclassification request follows the company's earlier communication dated November 11, 2025. By making this application, EFC Limited is adhering to the regulatory requirements set forth by SEBI for such reclassifications.

Implications

While the reclassification, if approved, would change the categorization of these individuals, it's important to note that their combined shareholding represents a minimal portion of the company's total shares. Shefali Chintan Parikh holds 0.01% of the company's shares, while Niren Abhaykumar Jhaveri's holding is listed as 0.00%.

The company has stated that this information has been shared to keep the stock exchanges and investors informed, in line with regulatory disclosure requirements. The reclassification, if approved by the stock exchanges, could potentially impact the company's promoter holding structure.

Investors and market participants are advised to monitor further announcements from the company or the stock exchanges regarding the status of this reclassification application.

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.