Latest News | Ola Electric Shares Tumble over 7 Pc; Hit 52-week Low
Get latest articles and stories on Latest News at LatestLY. Shares of Ola Electric Mobility Ltd tanked over 7 per cent on Monday morning after the firm said its vehicle registration service provider Rosmerta Digital Services Ltd has sought the initiation of insolvency proceedings against its wholly-owned arm Ola Electric Technologies Pvt Ltd.
New Delhi, Mar 17 (PTI) Shares of Ola Electric Mobility Ltd tanked over 7 per cent on Monday morning after the firm said its vehicle registration service provider Rosmerta Digital Services Ltd has sought the initiation of insolvency proceedings against its wholly-owned arm Ola Electric Technologies Pvt Ltd.
The stock slumped 7.12 per cent to hit a 52-week low of Rs 46.94 on the BSE.
At the NSE, shares of the firm declined 7.04 per cent to Rs 46.95 -- the 52-week low level.
In a regulatory filing, the company on Saturday said, "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 National Company Law Tribunal's Bengaluru Bench, alleging 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 Pvt Ltd, it added.
The company has sought appropriate legal advice and it strongly disputes the claims made, Ola Electric Mobility said, adding 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 at a time when Ola Electric Mobility is cutting around 1,000 jobs across different functions as part of a restructuring exercise to reduce losses.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)