OLA Electric Mobility has been continuously in the eye of the storm. The share price fell below Rs 50 per share on the National Stock Exchange, down 6.2% intra-day. This is after Rosmerta Digital Services initiated insolvency proceedings against OLA Electric Mobility’s wholly-owned subsidiary, Ola Electric Technologies, for non-payment of incurred services.
Rosmerta initiates bankruptcy proceedings
Romerta Digital is the operational creditor of Ola Electric Technologies and alleged that the latter has defaulted in payment after taking the services. “The petition has been submitted before the National Company Law Tribunal – Bengaluru Bench (“NCLT, Bengaluru”), alleging to default in payment towards the services rendered by the Operational Creditor and seeking initiation of the Corporate Insolvency Resolution Process (“CIRP”) against the Ola Electric Technologies Private Limited,” said OLA Electric Mobility in an exchange fling.
ALSO READWipro plummets 13% in 2025: 4 key factors to watch amidst restructuring of global business OLA’s recent troubles
The company was in regulatory trouble with transport authorities across various states. The authorities conducted raids, closed showrooms, seized vehicles, and sent show-cause notices due to the stores allegedly not having trade certificates.
Before that, in a news report by Bloomberg, it was alleged that the company will lay off more than 1,000 employees and contract workers. This signifies the company’s second wave of layoffs in under five months. In November 2024, Ola Electric terminated approximately 500 staff members.
OLA’s Q3 results
The company reported a net loss of Rs 564 crore for the third quarter of FY25, widened from Rs 376 crore posted in the same period a year ago. Sequentially, it reported a net loss of Rs 495 crore in the second quarter of FY25. Its revenue from operations in Q3 FY25 declined 19.36% YoY to Rs 1,045 crore, as against Rs 1,296 crore in the corresponding quarter of the last fiscal year.
ALSO READCan the Nifty scale past 23,000 this week? A look at key levels to watch OLA Electric’s stock performance
The share price of OLA Electric has cracked 10% in the last five trading sessions. The stock has declined 23% in the previous one month and erased 60% of investors’ wealth in the past six months. Since its listing in August 2024, OLA Electric’s share price has fallen 48%.
» Read More
