Ola Electric Faces Insolvency Proceedings: Share Prices Plunge

Ola Electric Mobility Ltd's shares fell over 7% after a petition for insolvency proceedings was filed by Rosmerta Digital Services Ltd against its subsidiary, Ola Electric Technologies Pvt Ltd. The petition alleges payment defaults, prompting legal actions by Ola amid a restructuring phase involving significant job cuts.

Shares of Ola Electric Mobility Ltd plummeted over 7% on Monday following news that Rosmerta Digital Services Ltd has initiated insolvency proceedings against its wholly-owned subsidiary, Ola Electric Technologies Pvt Ltd.

The stock closed at Rs 46.91 on the BSE, marking a 7.18% decline, and hit a record low intraday at Rs 46.40. Simultaneously on the NSE, shares fell 7.22% to end at Rs 46.86, also reaching an intraday low at Rs 46.40.

The National Company Law Tribunal's Bengaluru Bench received a petition under the Insolvency and Bankruptcy Code from Rosmerta, alleging defaults in payments. Ola Electric has disputed these claims, citing a strong defense and ongoing legal consultation as the company undergoes significant job cuts as part of a restructuring effort.

(With inputs from agencies.)