EFC (I) Ltd converted Rs 15 crore loan into 150 CCDs of Rs 10 lakh each

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EFC (I) Ltd converted Rs 15 crore loan into 150 CCDs of Rs 10 lakh each

The stock gave multibagger returns of 285 per cent in 3 years and a whopping 3,800 per cent in 5 years.

EFC (I) Ltd has announced the allotment of 150 fully paid-up 0.001 per cent Compulsorily Convertible Debentures (CCDs) by its material unlisted wholly-owned subsidiary, EFC Limited. Valued at Rs 10,00,000 each, the total consideration of Rs 15 crore was executed through the conversion of an existing unsecured loan previously extended by the parent company. As a 100 per cent subsidiary, EFC Limited is a related party, and the transaction was conducted at arm's length. This move effectively restructures the internal debt of the subsidiary into a convertible instrument without requiring additional cash outlay or immediate regulatory approvals.

EFC Limited operates within the managed office and co-working space industry, serving as the highest revenue-generating vertical for the group by providing workspace-as-a-service to enterprises and startups. Incorporated in February 2014, the entity has demonstrated significant financial growth, with its turnover rising from approximately Rs 119 crore in FY 2022-23 to over Rs 352 crore in FY 2024-25. By converting the unsecured loan into CCDs, EFC (I) Ltd maintains its total control over the subsidiary while strengthening the financial structure of its core leasing and infrastructure business in India.

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About the Company

EFC (I) Ltd, established in 1984, offers a range of Real Estate services, including office space leasing, co-working solutions, and turnkey projects. With over 20,000 seats available, their enterprise solutions cater to various industries. Their services aim to provide affordable and efficient workspace options for freelancers, startups, SMEs, and larger corporations, while also offering equipment rentals and design services.

The company has a market cap of over Rs 3,500 crore and debtor days have improved from 71.4 to 54.6 days. The stock gave multibagger returns of 285 per cent in 3 years and a whopping 3,800 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.