Shanti Educational Initiatives Ltd (SEIL) continues its upward momentum in the stock market, as its shares surged by 1.94 per cent today, reaching a new 52-week high of Rs 167.95 per share, compared to its previous close of Rs 164.75. The stock has been consistently hitting new highs in recent trading sessions. SEIL has provided multibagger returns of over 200 per cent from its 52-week low of Rs 52.01 per share and an astounding 1,600 per cent increase over the last five years.

SEIL recently announced its strategic decision to increase its investment in Uniformverse Private Limited, a manufacturer of textile garments and accessories, by up to Rs 1 crore. This investment will raise SEIL’s shareholding in Uniformverse to over 50 per cent, effectively making it a subsidiary. Uniformverse Private Limited has an authorized share capital of Rs 1 crore and a paid-up capital of Rs 70 lakh. The company recorded a gross turnover of Rs 7.21 crore for the financial year ending March 31, 2024.

The acquisition of Uniformverse falls under related party transactions, as SEIL already holds a 50 per cent stake in the company. However, the deal is conducted at arm’s length, and no other promoters or group companies have a stake in Uniformverse. This move aligns with SEIL’s broader business strategy to leverage synergies within the school uniform segment and expand its operational footprint.

In July 2024, SEIL published its financial results for the first quarter of FY 2024-25, reporting a total income of Rs 8.60 crore, representing a 13.3 per cent increase compared to Rs 7.59 crore in the same period last year. On a quarter-on-quarter basis, SEIL saw an impressive 200 per cent rise in total income, up from Rs 2.86 crore in the fourth quarter of FY 2023-24. The company also reported a net profit of Rs 2.76 crore for the quarter ending June 30, 2024, an 18.5 per cent increase year-on-year.

Additionally, SEIL has attracted significant investor attention, evidenced by recent block deals involving Albula Investment Fund Ltd (Mauritius) and Legends Global Opportunities (Singapore) Pvt Ltd. Albula Investment Fund Ltd purchased 47,20,190 shares at Rs 123 per share from Ltd Investment Fund Ltd. Earlier, on August 30, 2024, Legends Global Opportunities acquired 17,15,000 shares at Rs 114.20 per share from The Great International Tusker Fund. Both transactions were executed on the Bombay Stock Exchange (BSE).

SEIL, a division of the Chiripal Group, headquartered in Ahmedabad, India, operates a diverse range of educational institutions. Its Shanti Asiatic Schools, present in multiple cities, cater to over 25,000 K-12 students, while its Shanti Juniors preschools span more than 300 locations across 74+ cities. In 2013, the company introduced Shanti’s Hopskotch Preschool, which offers a premium preschool experience with a global approach and a focus on a clean, nurturing environment for young learners.

This growth and strategic investment in Uniformverse reflect SEIL’s ongoing efforts to enhance its portfolio and capitalize on opportunities in both the education and allied sectors.

Story first published: Tuesday, September 24, 2024, 12:24 [IST]