Aniket PujariOla Electric share price slumped by almost 4% during Monday’s trading session after Rosmerta Digital Services Ltd, its vehicle registration service provider, announced on Saturday that it intends to initiate insolvency proceedings against its wholly-owned subsidiary, Ola Electric Technologies Pvt Ltd.
In a regulatory submission, the company announced that M/s. Rosmerta Digital Services Ltd, which is an operational creditor of Ola Electric Technologies Pvt Ltd, has filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC).
The petition has been presented to the Bengaluru Bench of the National Company Law Tribunal, claiming that there has been a default in payments owed for services provided by the operational creditor and requesting the commencement of the corporate insolvency resolution process (CIRP) against Ola Electric Technologies Pvt Ltd.
Ola Electric Mobility stated that it has sought proper legal counsel and firmly contests the allegations raised, adding that it will “take all necessary and appropriate measures to safeguard its interests and challenge the claims in the aforementioned case.”
Last month, the company indicated that it was in the process of renegotiating its agreements with its partners—Rosmerta Digital Services Pvt Ltd and Shimnit India Pvt Ltd—to lower expenses and improve the efficiency of the registration process.
