Ola Electric Clears Dues With Rosmerta Group, Insolvency Petition Withdrawn

Shares of Ola Electric Mobility are expected to be in focus on Tuesday after the company confirmed it has managed to settle outstanding dues with vehicle registration service provider Rosmerta Group. The resolution comes after Rosmerta Digital Services Ltd had filed an insolvency petition against Ola Electric Technologies Pvt Ltd, a wholly owned subsidiary of Ola Electric, under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC), citing payment defaults.

Previously, Ola Electric stated that it had sought legal counsel and was prepared to take all necessary steps to defend its interests against the allegations. Following the payment settlement, the company disclosed in an exchange filing that Rosmerta Group had submitted a withdrawal memo for the insolvency petition before the National Company Law Tribunal (NCLT) in Bengaluru.

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Ola Electric's stock price was trading 1 per cent lower at Rs 55.15 per share on the National Stock Exchange (NSE) at 10:19 am, with a market capitalisation of Rs 24,325.73 crore. "The matter now stands fully resolved. Ola Electric remains committed to fulfilling its obligations and maintaining professional relationships with all stakeholders," the company stated.

Meanwhile, Rosmerta Group confirmed in a media release that it had received Rs 26,75,24,339, covering the entire claim filed before NCLT. The group also clarified that all legal proceedings have been withdrawn and that a newly executed settlement agreement will govern future engagements with Ola Electric.