Ola Electric clears dues with Rosmerta Group; shares down

Ola Electric share price: Shares of electric two-wheeler maker Ola Electric Mobility will be in focus on Tuesday after the company said that it has cleared dues with vehicle registration service provider Rosmerta Group.

Rosmerta Digital Services Ltd had sought initiation of insolvency proceedings against Ola Electric's wholly owned subsidiary Ola Electric Technologies Pvt Ltd for alleged default in payment. A petition was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC).

Ola Electric had earlier said that it had sought appropriate legal advice on the matter and that it would "take all necessary and appropriate steps to protect its interests and object to the allegations in the aforesaid matter".

After the dues were cleared, the EV maker in an exchange filing said, the Rosmerta Group filed the memo for withdrawal of the petitions filed before the National Company Law Tribunal (NCLT), Bengaluru.

Ola Electric share price

The stock traded 1% lower at ₹55.15 apiece on the National Stock Exchange (NSE) at 10:19 am. Its market capitalisation stands at ₹24,325.73 crore.

"The matter now stands fully resolved. Ola Electric remains committed to fulfilling its obligations and maintaining professional relationships with all stakeholders," the company said.

In a media statement, Rosmerta Group said, "With the receipt of ₹26,75,24,339, which consists of the entire claim raised before NCLT, Rosmerta Group companies are withdrawing its petitions before the NCLT, Bengaluru."

It added, "No further causes of action exist between Rosmerta Group and Ola Electric, whose relationship shall now be governed by the settlement agreement executed between them."