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(17 Mar 2025, 15:29)

Ola Electric hits 52-week low after arm faces insolvency petition over payment default

Ola Electric Mobility declined 7.14% to Rs 46.93 after an operational creditor, Rosmerta Digital Services, filed a petition against Ola Electric Technologies, alleging a default in payment towards services rendered.


Ola Electric Technologies is a wholly owned subsidiary of Ola Electric Mobility, while Rosmerta Digital Services is a subsidiary of Rosmerta Technologies (RTL) and focuses on providing digitally enabled services related to the automotive sector. The company is involved in the distribution of automotive components and accessories through digital platforms.

The petition seeks initiation of the corporate insolvency resolution process (CIRP) against the Ola Electric Technologies. The petition has been filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 and submitted to the National Company Law Tribunal (NCLT) – Bengaluru Bench.

Ola Electric Mobility has sought appropriate legal advice and it strongly disputes the claims made and will take all necessary and appropriate steps to protect its interests and object to the allegations in the aforesaid matter.

Ola Electric Mobility is a manufacturer of electric vehicles (EVs) and certain core components for EVs such as battery packs, motors, and vehicle frames at the Ola Future factory. On a consolidated basis, the company had reported a net loss of Rs 564 crore in the quarter ended December 2024 as against net loss of Rs 376 crore during the quarter ended December 2023. Net sales fell 19.37% year-on-year to Rs 1,045 crore in Q3 FY25 over Q3 FY24.

The Ola Electric Mobility counter hit a 52-week low of Rs 46.40 in intraday today.

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