Ola Electric Shares Plunge 7% to Record Low Amid Insolvency Petition
Ola Electric shares dropped 7% to ₹46.94, hitting a record low after an insolvency petition filed by Rosmerta Digital Services. Legal and financial challenges continue to weigh on the stock.
kowshik Reddy
On March 17, 2025, Ola Electric Mobility's stock price suffered a substantial decline, dropping over 7% to a record low of ₹46.94 on the Bombay Stock Exchange (BSE). This translates into a steep fall from the IPO price of ₹76, as delisted in August 2024, and a decline close to 38% since then.
The stock fell hard after Ola Electric disclosed that an insolvency petition was filed by Rosmerta Digital Services against one of its wholly-owned subsidiaries, Ola Electric Technologies, alleging defaults in payments. Ola Electric rebutted these allegations, maintaining that it rejects the allegations vehemently and is seeking legal recourse to protect its interests.
Apart from legal troubles, Ola Electric is battling shrinking sales, mounting regulatory scrutiny, job cuts, and restructuring activities. The company made a loss of ₹5.64 billion in the October-December quarter on account of low demand and deep discounts offered to woo customers. Currently, seven brokerages have rated the stock as "hold," giving it a median target price of ₹73.
Investors and stakeholders alike are advised to keep a close watch on the progression of these affect its ruling share price in the future.
