Ola Electric Share Price Drops 6% to 52-Wk Low Amid Insolvency Petition Against Subsidiary

Ola Electric Technologies Private Limited, a wholly owned subsidiary of Ola Electric Mobility Limited, is facing an insolvency petition filed by an operational creditor over alleged payment defaults. The case is currently before the National Company Law Tribunal (NCLT) Bengaluru.

The Petition and Allegations

According to Ola Electric Mobility’s regulatory filing on March 15, 2025, M/s Rosmerta Digital Services Limited, an operational creditor, has filed a petition under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016 against Ola Electric Technologies Private Limited.

The petition alleges that the company defaulted on payments for services rendered by Rosmerta Digital Services Limited, Ola Electric Mobility said in a press release on the stock exchanges.

The case has been submitted before the National Company Law Tribunal (NCLT) – Bengaluru Bench, seeking the initiation of the Corporate Insolvency Resolution Process (CIRP) against Ola Electric’s subsidiary.

Ola Electric’s Response

Ola Electric has strongly disputed the claims and stated that it has sought appropriate legal advice. The company maintains that it will take all necessary legal steps to protect its interests and object to the allegations.

The official disclosure from Ola Electric Mobility Limited assures stakeholders that it will challenge the petition.

Share Price Performance

Ola Electric Mobility Limited’s share price took a sharp hit, dropping 5.76% to ₹47.60 as of March 17, 2025. The stock opened at ₹49.98 and briefly touched an intraday high of ₹50.24 before sliding to a low of ₹47.44. This decline follows a previous close of ₹50.51, reflecting investor concerns amid ongoing legal challenges.

Conclusion

The insolvency petition against Ola Electric Technologies has raised investor concerns, leading to a sharp decline in Ola Electric Mobility Limited’s share price. While the company has strongly denied the allegations and plans to contest the petition, the ongoing legal proceedings add uncertainty to its financial outlook.

Investors will closely watch further developments in the case and Ola Electric’s response to gauge the potential impact on the company’s operations and stock performance.

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