Please find attached Letter of Comfort issued to ICICI Bank Limited
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Shanti Educational Initiatives Ltd has issued a Letter of Comfort to ICICI Bank Limited on behalf of its subsidiary, Uniformverse Private Limited. The subsidiary has availed credit facilities worth Rs. 49.90 million from ICICI Bank. The Letter of Comfort states that the parent company will not dilute its beneficial ownership in the subsidiary without prior written consent, and will keep ICICI indemnified against any losses from non-fulfillment of obligations by the borrower. The company has clarified that this is not a legal guarantee and is only a comfort assurance. Promoters and group companies have no direct interest in the transaction, and it is being done at arm's length.
This represents a contingent support obligation of up to Rs. 49.90 million for the parent company tied to its subsidiary's borrowings. While not a formal guarantee, it exposes the listed entity to potential indemnity claims if the subsidiary defaults, and shareholders should monitor the subsidiary's debt servicing capability.