Everonn Education dipped deeper into the red at Rs 281, down 20%, as its non-executive chairman Jamshed J Irani resigned following Tuesday's arrest of managing director P Kishore in a bribery case.
The tax officials conducted a search on the premises of the unnamed Chennai-based private educational firm on August 4, which revealed that the firm's managing director had concealed taxable income of Rs 116 crore ($25.2 million), the agency said in the release without naming the executive. The managing director then contacted the tax official through an accountant to reduce the income tax liability, the agency added.
Following the news of the arrest, Everonn, hit the lower circuit on Friday at Rs 352. And today, the stock has hit its second lower cuicuit.
Many investors, however, say though the event highlights corporate governance issues in the company, their belief in the sector's growth story remains strong.
Around 9,696 shares have exchanged hands on the BSE counter, so far.