Ola Electric Mobility shares rallied 4% in early morning trade after the company informed today that Rosemerta Group withdrew NCLT petitions
Ola Electric Share Price: Ola Electric Mobility shares rallied 4% in early morning trade after the company informed today that Rosemerta Group, a supplier for its wholly owned subsidiary, Ola Electric Technologies has filed a memo before the National Company Law Tribunal, to withdraw its insolvency petition against the company.
The development comes after Ola Electric settled all outstanding dues between its wholly-owned subsidiary and the Rosemerta Group, the company said in an exchange filing.
“Ola Electric has amicably settled all outstanding dues between its wholly owned subsidiary, Ola Electric Technologies Private Limited, and the Rosmerta Group. As a result, the Rosmerta Group has filed the memo for withdrawal of the petitions filed before the National Company Law Tribunal (“NCLT”), Bengaluru,” it stated in the exchange filing.
Following the development, the stock surged 4.09% to reach a high of Rs 58 on the BSE before settling at Rs 56.50, up 1.4%. Despite the rise, the stock remains down 32.74% so far in 2025 and has declined 44.28% over the past six months.
In a separate filing, Ola Electric stated that there were no further claims or disputes pending between the two parties regarding the matter. The company reiterated its commitment to maintaining strong business relationships and ensuring the timely resolution of any commercial issues. While the stock had previously been under pressure, Ola Electric Mobility had denied the claims, asserting that it would seek appropriate legal counsel.
Ola Electric had informed stock exchanges that it would take all necessary steps to protect its interests and contest the allegations. The petition by Rosmerta Digital Services was submitted to the National Company Law Tribunal (NCLT), alleging a default in payment for services rendered to Ola Electric. The company was seeking the initiation of the Corporate Insolvency Resolution Process against Ola Electric Technologies Private Ltd.
Over the past few months, Ola Electric has faced several challenges, including slower-than-expected growth in the EV two-wheeler industry, a decline in the EV 2W segment’s market share, delays in its motorcycle launch due to homologation issues, and a profitability impact from increased warranty claims.
Kotak Institutional Equities recently noted that while profitability is expected to improve in the coming quarters due to cost-cutting measures, volume growth may fall short of market expectations. The success of the upcoming motorcycle launch remains critical, as failing to meet customer expectations could further impact brand equity and long-term market share. The brokerage maintained a cautious outlook, citing execution risks.
