NIIT tumbles after CEO resigns

NIIT fell 5.49% to Rs 78.30 at 14:13 IST on BSE after the company announced that its CEO Rahul Keshav Patwardhan resigned due to personal reasons.

The announcement was made after market hours on Friday, 7 April 2017.

Meanwhile, the S&P BSE Sensex was down 74.94 points, or 0.25% to 29,631.67.

On the BSE, 22.85 lakh shares were traded in the counter so far, compared with average daily volumes of 2.01 lakh shares in the past one quarter. The stock had hit a high of Rs 80.40 and a low of Rs 73.80 so far during the day.

The stock hit a 52-week high of Rs 107.80 on 20 September 2016. The stock hit a 52-week low of Rs 67 on 9 November 2016.

The stock had outperformed the market over the past one month till 7 April 2017, rising 9.66% compared with 2.69% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, falling 6.49% as against Sensex's 11.01% rise.

The small-cap company has equity capital of Rs 33.15 crore. Face value per share is Rs 2.

NIIT said that its chief executive officer (CEO), Rahul Keshav Patwardhan, tendered his resignation due to compelling family reasons and has requested to be relieved from the close of business hours of 31 July 2017. The Board has accepted his resignation at its meeting held on 7 April 2017.

Further, the board of directors has approved the appointment of Sapnesh Lalla as chief executive officer designate of the company from 7 April 2017 and as chief executive officer of the company with effect from 1 August 2017.

On a consolidated basis, net profit of NIIT declined 56.20% to Rs 6 crore on 1.91% rise in net sales to Rs 267.30 crore in Q3 December 2016 over Q3 December 2015.

NIIT, a global leader in skills and talent development, offers multi-disciplinary learning management and training delivery solutions to corporations, institutions, and individuals in over 40 countries. NIIT has three main lines of business across the globe- corporate learning group, skills and careers group, and school learning group.

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