EFC (I) Limited to Acquire 100% Stake in Ultrafresh Modular Solutions for ₹54 Crore

BY ADMIN • FILED 13 Aug 2026, 7:53 PM

EFC (I) Limited (NSE: EFCIL | BSE: 512008) has entered into a Share Purchase Agreement to acquire a 100% equity stake in Ultrafresh Modular Solutions Limited, strengthening its presence in India’s modular furniture and home interior solutions market.

The proposed acquisition, announced on August 13, 2026, will be completed through a share swap mechanism, with the total acquisition consideration valued at ₹54 crore.

EFC to Acquire 100% of Ultrafresh Modular Solutions

EFC (I) Limited will acquire the entire equity share capital of Ultrafresh Modular Solutions Limited (Ultrafresh).

The transaction is subject to the completion of the conditions precedent specified in the Share Purchase Agreement. EFC expects the acquisition to be completed on or before October 31, 2026.

The acquisition will be funded through the issuance of fresh equity shares by EFC rather than a cash payment. The shares issued by EFC will be equivalent in value to the acquisition consideration payable for Ultrafresh.

Who Is Ultrafresh Modular Solutions?

Ultrafresh Modular Solutions is an established company operating in India’s modular home solutions segment.

The company offers modular kitchens, wardrobes, and other customised modular furniture and home interior solutions.

Its business model covers the complete process from design and manufacturing to supply and installation, with a focus on quality, functionality, customization and contemporary design.

Ultrafresh also owns a manufacturing plant at Nalagarh in Himachal Pradesh, giving the business a strategic manufacturing presence in North India.

The company is currently a 51% subsidiary of TTK Prestige Limited.

Strategic Acquisition for EFC’s Furniture Business

EFC said the acquisition is aimed at strengthening and scaling its existing furniture manufacturing and Design & Build solutions business.

Ultrafresh’s modular furniture and customised home interior operations are complementary to EFC’s existing business activities.

Through the acquisition, EFC intends to leverage its existing manufacturing capabilities, supply-chain infrastructure and design expertise while integrating Ultrafresh’s product portfolio, brand, design capabilities and market presence.

The combination is also expected to provide EFC with access to Ultrafresh’s factory and warehouse infrastructure in North India.

Acquisition Could Create Operational Synergies

The proposed acquisition is expected to create synergies across EFC’s furniture and interior solutions operations.

According to the company, the transaction could help:

Expand EFC’s product portfolio.
Strengthen its manufacturing capabilities.
Improve distribution and supply-chain capabilities.
Expand its presence in the organised modular home solutions market.
Leverage Ultrafresh’s established brand and design capabilities.
Improve operational integration and scale.
Create opportunities for long-term value creation.

The acquisition therefore represents a strategic extension of EFC’s existing furniture manufacturing and interior solutions business rather than an entry into an unrelated sector.

₹54 Crore Share Swap Acquisition

The total cost of acquisition is ₹54 crore.

Unlike a conventional cash acquisition, EFC will settle the consideration through a share swap.

Under the proposed structure, EFC will issue fresh equity shares equivalent in value to the acquisition consideration in exchange for the equity shares of Ultrafresh.

The number of EFC shares to be issued will therefore depend on the applicable transaction terms and valuation.

The issuance of fresh equity shares will require the requisite approval of EFC’s shareholders and applicable stock exchanges in accordance with the relevant laws and regulations.

Ultrafresh’s Turnover Has Increased Over Three Years

Ultrafresh reported turnover of ₹36.32 crore in FY2025-26, compared with ₹32.49 crore in FY2024-25 and ₹31.20 crore in FY2023-24.

This represents an increase in turnover over the three years, reflecting the company’s expanding operations in the modular furniture segment.

Ultrafresh was incorporated on December 3, 1992, and operates in India.

No Related Party Transaction

EFC has stated that the proposed acquisition does not constitute a related party transaction.

The company also confirmed that none of its promoters, promoter group, or group companies has any interest in Ultrafresh Modular Solutions.

The transaction is being undertaken on an arm’s-length basis.

Regulatory Approvals and Completion Timeline

The proposed acquisition does not require any specific governmental or regulatory approvals, according to EFC’s disclosure.

However, because the transaction involves the issuance of fresh equity shares by EFC as consideration, the company will require the necessary approvals from its shareholders and applicable stock exchanges.

EFC expects the acquisition to be completed on or before October 31, 2026.

What the Acquisition Means for EFC

The acquisition gives EFC an opportunity to strengthen its position in India’s growing organised modular home solutions market.

Ultrafresh brings an established product portfolio covering kitchens, wardrobes and customised modular furniture, along with manufacturing infrastructure and a presence in North India.

For EFC, integrating these capabilities with its existing furniture manufacturing, supply-chain and Design & Build operations could help create a more comprehensive furniture and interior solutions platform.

The share-swap structure also means that investors should monitor the number of new EFC shares issued and the resulting impact on the company’s equity base and shareholding structure once the transaction progresses.

EFC (I) Limited’s ₹54 crore acquisition of Ultrafresh Modular Solutions marks a strategic expansion of its furniture manufacturing and Design & Build business.

The company will acquire 100% of Ultrafresh through a share-swap transaction, bringing modular kitchens, wardrobes and customised home interior solutions into its broader business platform.

With Ultrafresh reporting ₹36.32 crore turnover in FY2025-26, the acquisition provides EFC with an established modular furniture business, manufacturing infrastructure and North India presence.

The transaction is expected to be completed by October 31, 2026, subject to the required conditions and approvals.

Source: EFC (I) Limited regulatory disclosure dated August 13, 2026. This article is based on the information provided in the company’s filing and is for informational purposes only, not investment advice.