Everonn Education shares were locked in upper circuit of 20 per cent at ₹ 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 ₹ 461.42 crore as of March 31, 2015
The company had last week posted a standalone net loss of ₹ 134.7 crore for the quarter ended June 2015, as against a net loss of ₹ 181.9 crore during the same period last fiscal. Total income from operations came in at ₹ 60.7 crore against ₹ 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.