Ola Electric share jumps 4% as Rosmerta withdraws NCLT pleas; key details

Ola Electric Mobility Ltd shares climbed 5 per cent in Tuesday's trade after the the pure-play EV company said Rosmerta Group has filed the memo for withdrawal of the petitions filed before the National Company Law Tribunal (NCLT), Bengaluru, as it has amicably settled all outstanding dues between its wholly owned subsidiary, Ola Electric Technologies Private Limited, and the Rosmerta Group.

In a filing to BSE and NSE, Ola Electric said the matter now stands fully resolved, adding that it remained committed to fulfilling its obligations and maintaining professional relationships with all stakeholders.

"With the receipt of Rs 26,75,24,339/- which consists of the entire claim raised before NCLT, Rosmerta Group companies are withdrawing its petitions before the NCLT, Bengaluru," Rosmerta Group group said in a statement.

Rosmerta said no further causes of action exist between Rosmerta Group and Ola Electric, whose relationship shall now be governed by the settlement agreement executed between them.Following the development, the stock climbed 4.09 per cent to hit a high of Rs 58 on BSE. Later it was trading at Rs 56.50, up 1.4 per cent. The scrip is down 32.74 per cent in 2025 so far and 44.28 per cent in the past six months.

In another filing, Ola Electric mentioned there were no further claims or disputes pending between the two parties in this matter.

Ola Electric said it remains committed to keeping strong business relationships and ensuring timely resolution of any commercial issues. The stock was earlier under pressure but Ola Electric Mobility had denied the claims, saying it would seek appropriate legal advice.

Ola Electric had told stock exchanges that it would take all necessary and appropriate steps to protect its interests and object to the allegations in the aforesaid matter. Rosmerta Digital Services petition was submitted before the NCLT as it alleged a default in payment towards the services rendered by it to the Ola Electric arm. It was looking for initiation of the Corporate Insolvency Resolution Process against the Ola Electric Technologies Private Ltd.

In the past couple of months, Ola Electric faced a host of challenges, including the EV two-wheeler industry’s slower-than-expected growth, the EV 2W segment’s market share loss, a delay in the motorcycle launch due to a homologation issue and profitability impact, owing to higher warranty issues.

"While we expect profitability to improve in the coming quarters, owing to cost-cutting initiatives, we believe the volume uptick will fall below the Street’s expectations. The motorcycle launch remains the key, as failure to meet customers’ expectations will continue to weigh on brand equity and long-term market share. Reduce stays, as execution falls short of expectations," Kotak Institutional Equities said recently.