Everonn Education Board Okays Conversion of Loan to Equity; Shares Hit Upper Circuit

Everonn Education shares were locked in upper circuit of 20 per cent at Rs 33.05 after the company's board approved conversion of loan into equity.

The Chennai-based education and training company in a regulatory said "the Board of Directors of the Company at its meeting held on August 18, 2015 proposed the conversion of loan into equity by preferential allotment of equity shares to the promoter group under section 62 (1) (c) of the Companies Act, 2013".

Analysts say that the proposed move is beneficial for Everonn Education as it will help the company lower its interest burden.

Everonn Education had a long-term debt of Rs 461.42 crore as of March 31, 2015.

The company had last week posted a standalone net loss of Rs 134.7 crore for the quarter ended June 2015, as against a net loss of Rs 181.9 crore during the same period last fiscal. Total income from operations came in at Rs 60.7 crore against Rs 86.2 crore a year ago.

As of 11:45 a.m., the trading volumes on the counter surged as 5 lakh shares changed hands on the BSE compared to its two-week average of 30,000 shares.