Ola Electric shares in focus as co settles dues with Rosmerta; key details

Ola Electric Mobility Ltd shares are in news after the company informed stock exchanges BSE and NSE that it has amicably settled all outstanding dues between its wholly owned subsidiary, Ola Electric Technologies Private Limited, and the Rosmerta Group. Following this, the Rosmerta Group has filed the memo for withdrawal of the petitions filed before the National Company Law Tribunal (NCLT), Bengaluru, Ola Electric said.

"The matter now stands fully resolved. Ola Electric remains committed to fulfilling its obligations and maintaining professional relationships with all stakeholders," the pure-play EV company informed BSE.

In another filing, Ola Electric said there are no further claims or disputes pending between the parties in this matter. The company, it said, remains committed to maintaining strong business relationships and ensuring timely resolution of any commercial issues.

Ola Electric Mobility had earlier strongly denied the claims made and said it was seeking appropriate legal advice. Ola Electric had told shareholders that it would take all necessary and appropriate steps to protect its interests and object to the allegations in the aforesaid matter.

"With the receipt of Rs 26,75,24,339/- which consists of the entire claim raised before NCLT, Rosmerta Group companies are withdrawing its petitions before the NCLT, Bengaluru," Rosmerta Group group said in a statement.

Rosmerta said no further causes of action exist between Rosmerta Group and Ola Electric, whose relationship shall now be governed by the settlement agreement executed between them.

The creditor's petition was submitted before the National Company Law Tribunal – Bengaluru Bench. It had alleged a default in payment towards the services rendered by it to the Ola Electric arm and was seeking initiation of the Corporate Insolvency Resolution Process against the Ola Electric Technologies Private Ltd.

Recently, Ola Electric said false narratives were being spread about its February 2025 sales data, saying its sales remain strong and that the temporary backlog in February was due to ongoing negotiations with vendors responsible for vehicle registrations.

In the past couple of months, Ola Electric faced a host of challenges, including the EV two-wheeler industry’s slower-than-expected growth, the EV 2W segment’s market share loss, a delay in the motorcycle launch due to a homologation issue and profitability impact, owing to higher warranty issues.

"While we expect profitability to improve in the coming quarters, owing to cost-cutting initiatives, we believe the volume uptick will fall below the Street’s expectations. The motorcycle launch remains the key, as failure to meet customers’ expectations will continue to weigh on brand equity and long-term market share. Reduce stays, as execution falls short of expectations," Kotak Institutional Equities said recently.