Ola Electric Crashes 7% To Hit All-Time Low, Stock Down Over 23% In 1 Month

Shares of Ola Electric Mobility plummeted over 7% in morning trade today to hit an all-time low at INR 46.94 apiece, dragged down by the company’s disclosure that one of its subsidiaries is facing bankruptcy proceedings.

In an exchange filing on Saturday, the Bhavish Aggarwal-led company said that Rosmerta Digital Services, an operational creditor of Ola Electric, filed a plea before the Bengaluru bench of the National Company Law Tribunal (NCLT) against its subsidiary Ola Electric Technologies. 

Rosmerta has alleged that Ola Electric Technologies defaulted on payment towards services rendered and sought the initiation of the corporate insolvency resolution process against the company.

However, Ola Electric, in a statement, disputed the claims made by Rosmerta and said it has sought appropriate legal advice and will take all necessary steps to protect its interests.

The stock has been on a downward trend for the last few months amid regulatory scrutiny, increasing competition, and rising losses. It has tumbled over 23% over the past month.

(The story will be updated soon.)

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