Ola Electric shares fall over 6% as Rosmerta Digital Services files petition under Section 9 of IBC, 2016; check details

"The petition has been submitted before the National Company Law Tribunal—Bengaluru Bench ("NCLT, Bengaluru"), alleging a default in payment towards the services rendered by the operational creditor and seeking initiation of the Corporate Insolvency Resolution Process ("CIRP") against Ola Electric Technologies," the filing added.

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

Ola Electric Mobility has been reeling under pressure due to several adverse developments around the company.

On March 3, Ola Electric, according to news reports, said it was cutting around 1,000 jobs across different functions as part of a restructuring exercise to reduce losses.

On March 4, Ola Electric Mobility said its wholly owned subsidiary has received a letter from IFCI for missing out on targets specified under the Production Linked Incentive Advanced Chemistry Cell scheme (PLI ACC).

As per the government sources, the company did not meet production and investment-related criteria specified under the PLI ACC scheme.

Shares of electric two-wheeler company Ola Electric Mobility Ltd listed on a flat note on August 9, 2024, against the issue price of ₹76, but later bounced back and jumped nearly 11%.