Ola Electric Share Jumps 14% After Hitting New 52-Week Low In Single-Trade; What Is Impacting This Auto Stock?

Ola Electric shares today: A day after tanking to the 52-week-lowest mark, shares of Ola Electric Mobility recovered from the loss and were trading 13.5% higher at Rs 53.22 per share on BSE on Tuesday's intraday trade.

The auto stock came under significant pressure on Monday amid concern about an insolvency petition filed against it by a creditor. The company is also executing workforce cut across its arms to channelise financial resources.

Ola Electric share price today

Ola Electric's share price witnessed a sharp rebound on Tuesday's trading session, after the company was trading over 13.54% higher at Rs 53.26 per share on BSE at 12:30 pm. The company stock hit its 52-week-low mark of Rs 46.32 per share on BSE on Monday. At present, its market capitalisation stands at Rs 23,492.08 crore. The company stock has declined over 33% on BSE year to date (YTD). Ola Electric stock its 52-week high mark of Rs 157.53 per share on BSE on 20 August, 2024.

Bhavish Aggarwal-led Ola Electric, made a stellar market debut in its initial public offering (IPO) in August last year. The company listed at stock market at Rs 75.99 apiece on the BSE. On the NSE, the Ola Electric stock was listed at a price of Rs 76 per share.

Take a Poll

What is impacting Ola Electric share price?

Shares of Ola Electric came under heavy pressure on Monday after its vehicle registration service provider Rosmerta Digital filed a petition with National Company Law Tribunal (NCLT) against Ola Electric Technologies Private Limited.

In its petition, Rosmerta Digital sought the intuition of insolvency proceedings against its wholly-owned arm Ola Electric Technologies Private Limited.

"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 company said in a regulatory filing on Saturday.

Insolvency petition against Ola Electric Technologies

The petition is currently pending before the NCLT's Bengaluru Bench. The petitioner had alleged a default in payment towards the services rendered by it. Consequently, it had sought an initiation of the corporate insolvency resolution process (CIRP) against Ola Electric Technologies Pvt Ltd.

The insolvency petition against Ola Electric Technologies Private Limited has been filed under Section 9 of the Insolvency and Bankruptcy Code 2016 (IBC).

Ola Electric Mobility has rejected the claims made by its creditor in the insolvency petition and has said that it is seeking assistance from legal counsel in the matter. The company has said that it will take all necessary and appropriate steps to safeguard its interests and challenges in the case.

Ola Electric Mobility has initiated job cuts in its multiple segments citing the requirement for restructuring to boost efficiency. The company announced in March earlier that it is trimming its workforce by 1,000 jobs in different sections as part of a restructuring exercise to reduce loss. The company made nearly 300-400 employees redundant and shortened its workforce citing stronger emphasis on profitability.

Earlier, the company reported a widening of its loss due to decline in revenue because of increased competition in the electric vehicle segment. Ola Electric Mobility's net consolidated loss widened to Rs 564 crore for the quarter that ended on December 31, 2024.