Everonn Education rallied 7% today morning to touch Rs26.50 at the NSE at the early morning trade. This came in despite the company being in the news for wrong reasons which had negative impacts on the share for quite sometime now.
The share was trading at good volumes of 1,100,614 shares after having a 9.9% decrease in yesterday’s closing to close at Rs 253.10. Throughout the last week the company was under the scanner by the government for the wrong reasons. The managing Director P Kishore has been sent to the jail by CBI on the charge of bribing an IT official for concealing the taxable income. After the incident spread its news around the last few sessions saw the stock plunging by 42%.
Its not long time back that this company was considered to be among the top blue chip companies in the education sector. However with all sorts of negative news coming in the stock is trading at levels near its historic lows.
As per the management’s decision the company plans to shuffle the top management and P Kishore who is behind the bars will be dropped from the management. As per experts if the company doesn’t give importance to corporate governance immediately it might miss the opportunity to gain investor confidence and prosper as it had been expected from the company.
It is to be seen what the results come out and the decision of the government in order to decide the future of the stock prices.