Stock market update: Shares of This company to be in focus as company issues letter of comfort for subsidiary

In a recent filing, the company stated that Shanti Educational Initiatives Limited has incorporated a wholly-owned subsidiary, 'Shanti Learning Initiatives Private Limited' (SLIPL), with its registered office in Gurugram, Haryana.

Stock market update: Shares of small-cap company Shanti Educational Initiatives Ltd will be on investors’ radar on Monday, January 19. In a filing on Saturday, January 17, the company disclosed that it had issued a Letter of Comfort in favor of its subsidiary, Uniformverse Private Limited. This Letter of Comfort is given to ICICI Bank Limited in respect of the credit facilities availed by Uniformverse Private Limited.

Uniformverse Private Limited, a subsidiary, has availed of a ₹49.90 million credit facility from ICICI Bank Limited. Shanti Educational Initiatives Limited has issued this Letter of Comfort, undertaking that the company will not reduce its beneficial ownership interest in the subsidiary’s paid-up share capital without prior written consent. It also assures that the bank will be indemnified against any loss in the event of the borrower’s default on any obligation.

In a recent filing, the company stated that Shanti Educational Initiatives Limited has incorporated a wholly-owned subsidiary, ‘Shanti Learning Initiatives Private Limited’ (SLIPL), with its registered office in Gurugram, Haryana.

According to information received from the exchange filing, the authorised share capital of Shanti Learning is Rs 1 lakh, divided into 10,000 equity shares at the rate of Rs 10 per share. This company was incorporated with the objective of carrying on the business of providing educational services and related activities. It will operate in the educational services industry.

The parent company, Shanti Educational Initiatives, has acquired 100% stake in SLIPL by investing Rs 1 lakh, making it a wholly owned subsidiary. On Friday, the company’s stock closed at Rs 166.55, down 1.77% or Rs 3 on the BSE.