Shanti Educational Initiatives Limited has issued a Letter of Comfort in favour of its subsidiary, Uniformverse Private Limited, in connection with credit facilities availed from ICICI Bank. The disclosure was made under SEBI Regulation 30, clarifying that the comfort letter is not a formal guarantee.
Author: Akshay Narula | EQMint
Shanti Educational Initiatives Limited has informed stock exchanges that it has issued a Letter of Comfort in favour of its subsidiary, Uniformverse Private Limited, on January 17, 2026. The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as per an official filing with the exchange.
The company stated that the Letter of Comfort has been issued to ICICI Bank Limited, in connection with credit facilities availed by the subsidiary.
Purpose of the Letter of Comfort
According to the disclosure, Uniformverse Private Limited has availed credit facilities amounting to ₹49.90 million from ICICI Bank. In this context, Shanti Educational Initiatives issued the Letter of Comfort to provide assurance to the lender regarding its continued commitment to the subsidiary.
The Letter of Comfort affirms that:
- The parent company will not dilute its beneficial ownership in the paid-up share capital of the subsidiary without prior written consent in case of non-fulfilment of commitments by the borrower
- The parent company will keep ICICI Bank indemnified against losses arising due to non-fulfilment of obligations by the subsidiary
These assurances are intended to support the subsidiary’s financing arrangements while maintaining transparency with stakeholders.
Clarification on Nature of the Comfort Letter
Importantly, the company clarified that the Letter of Comfort:
- Is not a guarantee
- Should not be construed as a guarantee
- Will only become a guarantee if a separate Deed of Guarantee is executed
This distinction has been explicitly mentioned in the disclosure to ensure clarity for investors and market participants regarding the company’s contingent liabilities and financial exposure.
Promoter Interest and Arm’s Length Confirmation
The filing further states that:
- The transaction involves a wholly-owned subsidiary
- The promoter or promoter group does not have any additional interest in the transaction
- The issuance of the Letter of Comfort has been carried out at arm’s length, in line with regulatory requirements
As a result, the transaction does not raise related-party concerns beyond the existing parent–subsidiary relationship.
Impact on Shanti Educational Initiatives
From a financial perspective, the company noted that the Letter of Comfort is given purely as a comfort and assurance mechanism. Since it does not constitute a formal guarantee, there is no immediate financial liability recorded on the books of the listed entity.
However, investors may continue to monitor:
- The financial performance of Uniformverse Private Limited
- Any future disclosures related to guarantees or indemnities
- Changes in credit exposure or subsidiary funding structures
Such monitoring is standard practice when evaluating parent–subsidiary financial arrangements.
Regulatory Compliance and Disclosure
The disclosure has been made in line with:
- Regulation 30 of SEBI LODR Regulations, 2015
- SEBI Circular dated July 13, 2023
Detailed information has been provided in Annexure A of the exchange filing, ensuring full compliance with disclosure norms and transparency requirements.
Conclusion
Shanti Educational Initiatives Limited has issued a Letter of Comfort in favour of its subsidiary Uniformverse Private Limited to support credit facilities availed from ICICI Bank. While the comfort letter provides assurance to the lender, the company has clearly stated that it does not amount to a guarantee. The disclosure reflects prudent regulatory compliance and offers clarity to investors regarding the nature and impact of the arrangement.
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Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Securities market investments are subject to market risks. Readers are advised to consult certified financial advisors or registered investment professionals before making any investment decisions.
