Everonn Education soars on preferential issue plans

Everonn Education has hit its upper circuit limit of 5% at Rs 367 after the board of directors of the company approved to issue 2.62 million equity shares representing 13.63% of the exiting equity capital to its co-promoters at a premium on preferential basis.

“The board approved the issue of 2.62 million equity shares of Rs 10 each for cash at a price of Rs 528 per share aggregating to Rs 138 crore to M/s Varkey Group on preferential basis," the company said in a filing to the stock exchanges.

The company has signed Memorandum of Understanding (MOU) between the Company, M/s Varkey Group Ltd and M/s SKIL Infrastructure Ltd (Confirming Party). On completion of the proposed allotment M/s Varkey Group Ltd and persons acting in concert shall be treated as a Co-promoter of the company, it added.
 
The board also approved the increase of the total NRI limit under the portfolio investment scheme from 10% to 24%, subject to requisite shareholder/regulatory and other approvals as may be required.
 
The stock has rallied 51% in past six trading days from Rs 243.20 on September 12, 2011. Around 10,000 shares have changed hands on the counter on opening deals and there are pending buy orders for 700,000 shares on the NSE and the BSE.