Ola Electric share price jumps 4% after Rosmerta Group withdraws NCLT petitions

Ola Electric share price jumped 4% during Tuesday’s trading after the EV-focused company announced that Rosmerta Group has submitted documents to withdraw the petitions it had filed with the National Company Law Tribunal (NCLT) in Bengaluru, following an amicable settlement of all outstanding payments between its wholly owned subsidiary, Ola Electric Technologies Private Limited, and Rosmerta Group.

“Ola Electric has amicably settled all outstanding dues between its wholly owned subsidiary, Ola Electric Technologies Private Limited, and the Rosmerta Group. As a result, the Rosmerta Group has filed the memo for withdrawal of the petitions filed before the NCLT, Bengaluru. The matter now stands fully resolved. Ola Electric remains committed to fulfilling its obligations and maintaining professional relationships with all stakeholders," said the company in an exchange filing.

Further, the Rosmerta Group also announced today that Ola Electric Technologies Private Ltd, has cleared all its outstanding dues.

With the payment of ₹26,75,24,339/-, which covers the full claim submitted to the NCLT, the Rosmerta Group companies are retracting their petitions from the NCLT in Bengaluru.

There are no additional causes for action remaining between Rosmerta Group and Ola Electric, and their relationship will now be governed by the Settlement Agreement signed between the two parties.

Last week, the company revealed in a regulatory filing that M/s. Rosmerta Digital Services Ltd, an operational creditor of Ola Electric Technologies Pvt Ltd, has submitted a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC).

This petition, lodged with the Bengaluru Bench of the National Company Law Tribunal, asserted that payments for services provided by the operational creditor have not been made and sought the initiation of the corporate insolvency resolution process (CIRP) against Ola Electric Technologies Pvt Ltd.

On Saturday, the company announced its plans to commence insolvency proceedings against Ola's fully-owned subsidiary, Ola Electric Technologies Pvt Ltd.

Ola Electric share price today

Ola Electric share price today opened at an intraday high of ₹58 apiece on the BSE. The stock touched an intraday low of ₹55.53 per share.

Anshul Jain, Head of Research at Lakshmishree Investment and Securities stated that Ola Electric share price formed a short-term bottom on March 18, with an open-low structure and a strong close backed by a 510% volume surge against the 50-day EMA.

“The bullish momentum continued on March 21, with another volume spike, 5x the 50-day EMA. Currently trading above the 10 and 20-day EMAs, the stock is showing signs of a short-term recovery. The logical upside target for this bounce remains the 50-day EMA at 64.5, where key resistance lies,” added Jain.

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