New Delhi: Ola Electric Mobility's shares rebounded from early losses to close over 5 per cent higher after Consumer Protection Authority issued a notice for alleged misleading ads and unfair trade practices. Breaking a three-day decline, the company's stock rose by 5.15 percent to end at Rs 95.50 each on the NSE. It increased by 5.11 per cent on the Bombay Stock Exchange, closing at Rs 95.46 per share. Throughout the day, the stock of electric vehicle manufacturer Ola Electric dropped by 6.17 percent to reach an intraday minimum of Rs 85.21 per share on the stock exchange.
1.3 crore equity shares of Ola Electric Mobility were traded on the BSE, with 11.33 crore shares changing hands on the NSE on the same day, in terms of volume. BSE Sensex gained 584.81 points (0.72%) to reach 81,634.81, while NSE Nifty increased by 217.40 points (0.88%) to end at 25,013.15. Ola Electric Mobility stated in a filing on Monday that it has been issued a show cause notice by the Central Consumer Protection Authority (CCPA) for supposedly breaching consumer rights, deceptive advertising, and unjust business practices. Additionally, the CCPA has mandated a 15-day timeframe for the company to reply to the show cause notice.
Nevertheless, the company emphasized that the show cause notice will not affect its financial, operational, or other activities. The filing stated that the show cause notice issued by the authority does not result in any penalties or fines being imposed. Ola Electric Mobility's stocks dropped by 10 percent at the start of the week but eventually closed with an 8 percent decrease due to concerns about the quality of its electric scooters and the CEO's social media conflict.
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