The company has sought appropriate legal advice and it strongly disputes the claims made, said Ola Electric Mobility. File
| Photo Credit: Reuters
Shares of Ola Electric Mobility Limited tanked over 7% on Monday (March 17, 2025) morning after the firm said its vehicle registration service provider Rosmerta Digital Services Limited has sought the initiation of insolvency proceedings against its wholly-owned arm Ola Electric Technologies Private Limited.
The stock slumped 7.12% to hit a 52-week low of ₹46.94 on the Bombay Stock Exchange. At the National Stock Exchange, shares of the firm declined 7.04% to ₹46.95 — the 52-week low level.
In a regulatory filing, the company on Saturday (March 15, 2025) said, “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.”
The petition has been submitted before the National Company Law Tribunal’s Bengaluru Bench, alleging default in payment towards the services rendered by the operational creditor and seeking initiation of the corporate insolvency resolution process (CIRP) against Ola Electric Technologies Private Limited, it added.
The company has sought appropriate legal advice and it strongly disputes the claims made, Ola Electric Mobility said, adding it would “take all necessary and appropriate steps to protect its interests and object to the allegations in the aforesaid matter”.
The insolvency proceedings come at a time when Ola Electric Mobility is cutting around 1,000 jobs across different functions as part of a restructuring exercise to reduce losses.
Published – March 17, 2025 12:57 pm IST
