The share price of Everonn Education Ltd took a beating on the Bombay Stock Exchange following two major announcements – the company's poor financial results during the quarter ended September and delay in open offer by the Dubai-based Varkey Group to acquire 20 per cent in Everonn.

The scrip of the Chennai-based education company opened at Rs 343, but dropped steeply to Rs 280.50 at 11.30 a.m. before recovering to end the day at Rs 335.30, a decline of Rs 15.30 or 4.36 per cent over the previous day's closing price.

Open offer

On the open offer, which was scheduled to open today, ICICI Securities, the manager to the offer, said, “The schedule of activities as per the disclosure made in the public announcement will undergo change after incorporating necessary changes.

Hence, the offer will now not open on November 16 which was the Date of opening of the Offer,” the company in a statement to Bombay Stock Exchange on Tuesday.

The Varkey Group plans to acquire 20 per cent stake in Everonn at a price of Rs 528 per fully paid-up equity share of face value Rs 10 each.

Poor results

Everonn reported a net loss of Rs 3.7 crore in the quarter ended September 2011 against an impressive net profit of Rs 23 crore in the same quarter last year. Revenue declined by 26 per cent to Rs 80 crore (Rs 108 crore).

Company officials could not be reached for comment.

Shareholding

The shareholding of financial institutional investors in Everonn has more than halved to 12.17 per cent during the quarter ended September 2011.

Their shareholding had declined by nearly 20 per cent in the last one year. The purchase of 6.27 per cent stake by the Varkey Group increased the shareholding of corporate bodies during the quarter.

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