Ola Electric Mobility Limited's shares took a hit on Monday, March 17, 2025, slipping by as much as 6.35% to ₹47.30 per share on the National Stock Exchange (NSE). The drop followed the company's disclosure in a stock exchange filing on Saturday, March 15, 2025. It revealed that Rosmerta Digital Services Limited, one of its operational creditors, had initiated a case under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016.
The case, now before the National Company Law Tribunal (NCLT) in Bengaluru, claims that Ola Electric Technologies Private Limited, a wholly owned subsidiary, has defaulted on payments for services rendered.
Ola Electric's response to the allegations
Ola Electric is pushing back against the claims, stating that it has sought legal advice and will take all necessary steps to protect its interests. The company maintains that the allegations are not valid and is prepared to fight the case at the tribunal.
Job cuts and regulatory setbacks add to the challenges
This legal dispute is just one of the hurdles Ola Electric has been dealing with lately. Earlier this month, on March 3, 2025, reports surfaced about the company cutting around 1,000 jobs across various departments as part of a restructuring plan. This follows a previous round of layoffs last year when Ola Electric let go of about 500 employees.
A spokesperson explained that the restructuring and automation of front-end operations were aimed at improving efficiency, reducing costs, and enhancing customer experience, which resulted in certain roles becoming redundant.
Adding to its troubles, on March 4, 2025, Ola Electric Mobility's subsidiary received a notice from the Industrial Finance Corporation of India (IFCI) for missing targets under the government's Production Linked Incentive Advanced Chemistry Cell (PLI ACC) scheme. Reports suggest the company failed to meet production and investment requirements outlined in the scheme, raising concerns over future eligibility for incentives. This has also led investors to reconsider whether to invest in stocks of the company amid uncertainty.
Investors on edge amid stock volatility
For those looking to invest in stocks, these recent developments have sparked concerns about Ola Electric's financial and operational stability. Since its listing on August 9, 2024, at ₹76 per share, the company initially saw an 11% jump but has since faced a series of setbacks. With legal and regulatory challenges piling up, investors are keeping a close watch on how things unfold.
As of March 17, 2025, at 11:10 AM, Ola Electric's stock was trading at ₹47.25 per share on the NSE. Experts suggest that those planning to invest in stocks should stay cautious, especially in the electric vehicle sector, where regulatory and operational risks can play a big role in market performance.
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