P. Kishore, co-founder and managing director of Chennai-based Everonn Education Ltd, has resigned from his management and board position in the company. Kishore was arrested by the CBI in an alleged bribery and tax evasion case last year.
The education services company also announced the appointment of Dino Varkey and Rakesh Sharma as nominee additional directors of Varkey Group Ltd, which came in as the white knight after Everonn’s share price collapsed in the aftermath of Kishore’s arrest. After completing the recent open offer, Varkey Group holds over 38 per cent stake in Everonn.
The $2.5 billionVarkey Group, which owns GEMS Education, is one of the world’s largest private school companies.
Everonn also reported Q3 FY12 results today, with a net loss of Rs 6.54 crore, as compared to a net profit of Rs 21.62 crore during the same period last fiscal. Total income rose from Rs 85.7 crore to Rs 88.27 crore in the same period.
The share price of Everonn closed at Rs 296.45 on the BSE today, up 1.21 per cent from the previous close.
Institutional investors, who held over 30 per cent stake in the company around a year ago, almost exited the company and FII/DII holding in the firm dropped to less than 1 per cent as of December 31, 2011. Private equity firm New Vernon, which held over 5 per cent stake in Everonn till September 2011, also exited the company during the last quarter, according to latest stock market disclosures.
Varkey Group Makes Open Offer For Everonn