Ola Electric Mobility Ltd’s shares fell over 7% on Monday after the company revealed that its vehicle registration service provider, Rosmerta Digital Services Ltd, has filed for insolvency proceedings against its fully-owned subsidiary, Ola Electric Technologies Pvt Ltd.
The stock dropped 7.12% to a 52-week low of ₹46.94 on the BSE, while on the NSE, it declined 7.04% to ₹46.95, marking its lowest point in the past year.
In a regulatory filing on Saturday, Ola Electric stated that Rosmerta Digital Services Ltd, an operational creditor, has submitted a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC). The petition was filed with the National Company Law Tribunal (NCLT) in Bengaluru, claiming that Ola Electric Technologies Pvt Ltd failed to make payments for services provided. As a result, Rosmerta has requested the initiation of a corporate insolvency resolution process (CIRP) against the subsidiary.
Ola Electric Mobility, however, disputes these claims and has sought legal advice. The company has assured that it will take all necessary legal steps to defend itself and challenge the allegations.
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