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Shares of Everonn Education climbed by 5 per cent to hit the upper circuit limit in early trade on the bourses today after the company said it will sell a 12 per cent stake to Dubai-based Varkey Group firm Gems Education.
The stock, which opened the day on a robust note, jumped 5 per cent 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 per cent 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 per cent 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.
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