Troubled education firm Everonn Education Ltd named Rakesh Sharma as managing director, sending the company’s stock higher by as much as 10% in intra-day trading.

Sharma is a director at Everonn Education representing the Dubai-based Varkey Group, which holds a 43% stake in the company, the Chennai-based firm informed BSE.

Everonn rose 10.59% to 170.85 at 12:23pm on BSE. The benchmark Sensex fell 0.73% to 18,919.70.

Susha John, co-founder and chief executive officer, who has been responsible for initiating several businesses and leading Everonn for the past 25 years, informed the company of her intention to step down from the board and her current position to tend to family commitments.

“We have appointed an external adviser for the company and we will share our growth plans in December," Sharma said in an interview, without giving details.

John, who was absent during Everonn’s annual general meeting on 25 September, asked the board not to consider her a promoter, the release said.

In July, the company’s chief financial officer K.N. Srinivasan resigned citing health issues. Ramesh Chandra Guntireddy, a chartered accountant working with the company for more than seven years, replaced Srinivasan.

Co-founder P. Kishore had stepped down from the board and resigned as managing director from the company in February. The board decided to declassify him and his family members as promoters in March, seven months after Kishore was arrested on charges of bribery and tax evasion.