Ola Electric Faces Insolvency Proceedings Amidst Job Cuts

Ola Electric Mobility Ltd's shares fell over 7% following insolvency proceedings initiated by Rosmerta Digital Services Ltd against its subsidiary, Ola Electric Technologies Pvt Ltd. This comes as Ola Electric is also undertaking a restructuring exercise that involves cutting 1,000 jobs to reduce losses.

Shares of Ola Electric Mobility Ltd experienced a significant decline, dropping over 7% on Monday morning. This downturn occurred after Rosmerta Digital Services Ltd, a vehicle registration service provider, initiated insolvency proceedings against Ola Electric's subsidiary, Ola Electric Technologies Pvt Ltd.

The stock value plummeted to a 52-week low on both the BSE and NSE, underscoring the financial strain faced by the company. The insolvency petition, filed under Section 9 of the Insolvency and Bankruptcy Code, was submitted to the National Company Law Tribunal's Bengaluru Bench.

This corporate turmoil coincides with Ola Electric's announcement of job cuts, affecting approximately 1,000 positions across various departments as part of a restructuring strategy aimed at reducing operational losses.

(With inputs from agencies.)