Ola Electric shares slide 7%, slips to record low amid insolvency petition against subsidiary

The shares of Ola Electric Mobility fell 6.69% to a record low of Rs 46.94 on BSE on Monday, March 17, after the company disclosed that an insolvency petition had been filed against its wholly-owned subsidiary, Ola Electric Technologies, by M/s. Rosmerta Digital Services.

The petition was submitted by Rosmerta Digital, which is an operational creditor of Ola, before the National Company Law Tribunal (NCLT), Bengaluru Bench. The creditor has alleged payment defaults for services rendered and has sought the initiation of a Corporate Insolvency Resolution Process (CIRP) against Ola Electric Technologies.

“We wish to inform you that a petition has been filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 ("IBC") by M/s. Rosmerta Digital Services Limited, an Operational Creditor of Ola Electric Technologies Private Limited, a wholly owned subsidiary of Ola Electric Mobility Limited ("the Company"). The petition has been submitted before the National Company Law Tribunal – Bengaluru Bench ("NCLT, Bengaluru"), alleging to default in payment towards the services rendered by the Operational Creditor and seeking initiation of the Corporate Insolvency Resolution Process ("CIRP") against the Ola Electric Technologies Private Limited,” Ola Electric informed the stock exchanges.

In its official statement, the company has strongly disputed the claims and assured stakeholders that it has sought legal advice to challenge the allegations. The company has also emphasized that it will take all necessary measures to protect its interests.

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Ola Electric share price performance

Ola Electric shares have declined 41.39% year-to-date (YTD), reflecting a significant downtrend. Over the past six months, the stock has dropped 54.71%, while the three-month performance remains weak with a 46.13% decline. In the last month, the price has fallen 21.34%.

On Thursday, the stock closed 1.12% lower at Rs 50.54 on the BSE.

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