EFC (I) Ltd is seeking shareholder approval for ₹850 crore in related party transactions with Pepperfry. The company also plans to amend its MOA to include co-working and furniture manufacturing, alongside a reduction in Mr. Abhishek Narbaria's remuneration.
EFC (I) Ltd Proposes Major Related Party Deals and Remuneration Change
EFC (I) Ltd has announced significant proposals for shareholders to consider, including ₹850 crore in potential related party transactions with Pepperfry Limited and a revised remuneration structure for key executive Mr. Abhishek Narbaria. ## What just happened The company is seeking approval for two major deals with Pepperfry: a ₹500 crore 'Design & Build' contract and a ₹350 crore furniture and fixture sales contract. Additionally, Mr. Abhishek Narbaria's proposed fixed remuneration for FY 2026-27 is ₹4.8 crore, down from ₹8.82 crore in FY 2025-26. The Memorandum of Association (MOA) also seeks amendments to include activities like co-working space management and furniture manufacturing. ## Why this matters These resolutions signal a substantial increase in business with related parties, significantly expanding the company's order book. The change in executive compensation also indicates a shift in the company's cost and incentive strategy. Investors will be watching the execution of these large contracts closely. ## The backstory EFC (I) Ltd operates an integrated Real Estate-as-a-Service (REaaS) model. The proposed MOA changes aim to align its legal objectives with its current services, which include turnkey project execution and furniture manufacturing. The previous transaction value with Pepperfry was ₹27.46 crore. ## What changes now Shareholder approval is required for these significant transactions and MOA alterations. The company expects these deals to leverage its execution capabilities and strengthen its order book, while the new remuneration structure aims for a more conservative compensation approach. ## Risks to watch Concentration of business with related parties and the execution risk associated with large contracts are key points for investors to monitor. Management overlap in related entities also warrants attention. ## Peer comparison (No verified peer comparison data available in the filing.) ## Context metrics (time-bound) * Proposed RPTs with Pepperfry (FY 2026-27): ₹850 crore total. * Previous RPT with Pepperfry (FY 2025-26): ₹27.46 crore. * Proposed remuneration for Abhishek Narbaria (FY 2026-27): ₹4.8 crore. * Previous remuneration for Abhishek Narbaria (FY 2025-26): ₹8.82 crore. ## What to track next Investors should track the outcome of the postal ballot and the subsequent execution of the proposed contracts with Pepperfry and the company's performance in its expanded service areas.
