Ola Electric Share Price Rises 4% After Settlement of NCLT Dispute

Market Performance

Ola Electric's share price increased 4% during Tuesday's trading session. The rise followed the company's announcement that Rosmerta Group had filed to withdraw petitions with the National Company Law Tribunal (NCLT) in Bengaluru. The stock opened at ₹58 per share on the BSE and reached an intraday low of ₹55.53 per share.

Resolution of Legal Dispute

Ola Electric's share price increase coincided with resolving a payment dispute between Ola Electric Technologies Private Limited, a wholly owned subsidiary of Ola Electric, and Rosmerta Group. After settling all outstanding payments, Rosmerta Group submitted documents to withdraw its petitions with the NCLT.

According to a company statement, the matter is now fully resolved, and Ola Electric emphasized its commitment to meeting its obligations and maintaining positive relationships with stakeholders.

Background of the NCLT Petition

Earlier, Rosmerta Digital Services Ltd, an operational creditor of Ola Electric Technologies Pvt Ltd, had submitted under the Section 9 of the Insolvency and Bankruptcy Code 2016 petition before the Bengaluru Bench of the NCLT to address the issue of outstanding dues. The petition sought to initiate the corporate insolvency resolution process (CIRP) against Ola Electric Technologies Pvt Ltd due to alleged non-payment for services provided.

Ola Electric later disclosed plans to initiate insolvency proceedings involving its subsidiary, Ola Electric Technologies Pvt Ltd. However, with the recent settlement, these proceedings will no longer advance.

Summary

Ola Electric's share price rose by 4% after Rosmerta Group withdrew its petitions from the NCLT following an amicable settlement of outstanding payments. The legal matter has been resolved, and the company has reiterated its commitment to fulfilling its obligations. The stock opened at ₹58 and touched an intraday low of ₹55.53 on the BSE during the trading session.