Everonn Education hits upper circuit on bourses

Shares of Everonn Education climbed by 5% to hit the upper circuit limit in early trade on the bourses today after the company said it will sell a 12% stake to Dubai-based Varkey Group firm Gems Education.

The stock, which opened the day on a robust note, jumped 5% to Rs 385.50 in early trade on the Bombay Stock Exchange, triggering the upper circuit-breaker.

In a similar fashion, the scrip hit the upper limit in early trade on the National Stock Exchange, surging by 5.01% to Rs 385.60.

The board of directors of Everonn Education has approved the issue of 26.18 lakh equity shares at a price of Rs 528 per share, aggregating to Rs 138.23 crore, to the Varkey Group on a preferential basis, Everonn said in a statement.

Each share will cost Gems Rs 528, an over 40% premium vis-a-vis the closing price of Everonn's shares yesterday.

 The board also approved a tripartite Memorandum of Understanding between the company, Varkey Group and Everonn's co-promoter, SKIL Infrastructure.

Varkey Group will also make an open market offer to Everonn shareholders for additional scrips.

Everron Education provides education services using VSAT technology in pre-school and business schools in 16 states of India.

Gems Education has international schools across 140 countries.