- By Aditya Pratap Singh
- Mon, 17 Mar 2025 01:32 PM (IST)
- Source:JND
Ola Electric Share Price NSE: Shares of Ola Electric Mobility Limited fell over 7 per cent during the intraday trade on Monday after Rosmerta Digital Services Ltd Limited, a vehicle registration service provider, sought to initiate insolvency proceedings against its wholly-owned subsidiary Ola Electric Technologies Private Limited.
The electric mobility company's stock fell around 7.5 per cent to hit a new 52-week and all-time low of Rs 46.75 on the NSE till 12:45 pm. On the BSE, Ola Electric's share price fell to hit a new 52-week low of Rs 46.85, trading below the Rs 50 mark for the first time.
Insolvency Filled Against Ola Electric
An operational creditor has filed a petition before the Bengaluru bench of the National Company Law Tribunal, alleging default in payments for services rendered and seeking initiation of a Corporate Insolvency Resolution Process (CIRP) against Ola Electric Technologies Private Limited.
In a regulatory filing, the company on Saturday said, "A petition has been filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) by M/s. Rosmerta Digital Services Ltd, an operational creditor of Ola Electric Technologies Pvt Ltd."
Ola Shares Fall 40% below IPO Price
The Ola Electric Mobility shares are trading over 40% lower against the IPO price, which was Rs 76 per share. The shares are down around 350% from their all-time high of Rs 157.40 per share on NSE. Ola ElectriMobility's share price has been hitting a 52-week high for a while as it plunged over 17% in the last five trading sessions. In a month Ola Electric's Share Price plummeted by over 23% and in a year it fell by over 38%.
Bidding for OLA Electric was opened between August 24 to August 6, 2024, and the shares got listed on BSE, NSE on August 9, 2024, and it was a flat listing. The company had set the price band at Rs 76 per share. However, Ola electric shares skyrocketed on the listing day, following heavy buying interest and soared to hit a 52-week high of Rs 157.40 on NSE in the first few weeks of listing.
Ola Electric Denies Allegation
Ola Electric Mobility said it has sought appropriate legal advice and strongly denies the allegations made and will take all necessary and appropriate steps to protect its interests and counter the allegations in the above matter.
The insolvency proceedings come at a time when Ola Electric Mobility is laying off around 1,000 jobs across various functions as part of a restructuring exercise to mitigate losses.
