Ola Electric Mobility Limited's share price saw an increase after the company announced that it had settled its financial obligations with the Rosmerta Group. The resolution led to the withdrawal of insolvency petitions filed before the National Company Law Tribunal (NCLT) in Bengaluru.
Resolution of financial dispute
Ola Electric Mobility, a leading electric two-wheeler manufacturer, confirmed that it had cleared all outstanding dues with the Rosmerta Group. The dispute had initially led Rosmerta Digital Services Limited to file a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC), against Ola Electric Technologies Private Limited, a wholly owned subsidiary of Ola Electric.
Legal proceedings and resolution
The dispute arose when Rosmerta Digital alleged that Ola Electric had defaulted on payments. Following legal consultation, Ola Electric stated that it would take all necessary steps to protect its interests. After settling the dues, Ola Electric informed the stock exchanges that the Rosmerta Group had submitted a memorandum for the withdrawal of the insolvency petitions.
Market response to the settlement
The share market investment community reacted negatively to the news as evidenced by the downward movement in Ola Electric's stock price.
At 10:19 AM on Tuesday, March 25, 2025, Ola Electric's shares were trading 1% lower at ₹55.15 per share on the National Stock Exchange (NSE). The company's market capitalisation stood at ₹24,325.73 crores. Despite the temporary dip, market analysts observed that resolving legal disputes typically strengthens investor confidence in the long-term.
Details of the settlement amount
In an official statement, the Rosmerta Group confirmed receiving ₹26,75,24,339 as part of the settlement. With this payment, Rosmerta announced the withdrawal of all legal proceedings against Ola Electric, indicating that no further disputes remain between the two entities. The relationship between the companies will now be governed by the terms outlined in the settlement agreement.
Outlook for Ola Electric
Ola Electric has been a key player in India's electric vehicle market, focusing on expanding its product line and infrastructure. With the settlement of financial disputes, investors interested in share market investment will closely monitor the company's future growth and strategic initiatives.
At 11:30 AM on Tuesday, March 25, 2025, the shares of Ola Electric Mobility were trading at ₹55.15 per share on the NSE.
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