Ola Electric share price rises nearly 15% after hitting 52-week-low

Intraday, the stock rose as much as 14.6% to ₹53.8 apiece on the National Stock Exchange (NSE). At 12:46 pm, it was up 13.3% to ₹53.17.

The company's market capitalisation stands at ₹23,452.38 crore.

Earlier in the day, the scrip hit its 52-week low of ₹46.37 per unit.

In an exchange filing, the company stated, "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."

The petition has been submitted before the Bengaluru Bench of the National Company Law Tribunal (NCLT), alleging default in payment towards the services provided by the operational creditor and seeking commencement of the corporate insolvency resolution process against Ola Electric Technologies Pvt Ltd, it added.

Ola Electric Mobility has sought appropriate legal advice, while strongly disputing the claims made. The company said it would "take all necessary and appropriate steps to protect its interests and object to the allegations in the aforesaid matter".

The insolvency proceedings come when Ola Electric is cutting about 1,000 jobs as part of a restructuring exercise to reduce losses.

Last year, the EV maker had cut around 500 jobs.