Mumbai5 minutes ago
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The shares of Ola Electric have a decline of about 8% on Monday (March 17). The company’s stock has declined after the company’s petition was filed against a subsidiary of the company. Ola’s stock is trading close to Rs 47.
Understand the whole matter in 3 points
Three companies Ola Electric Mobility are associated with its subsidiary Ola Electric Technology Private Limited and Rosmarta Digital Services Limited.
- Rosmarta Digital, a company making high security number plate, has accused Ola Electric Technology Private Limited of stopping the arrears of Rs 18 to 20 crore.
- For this, RoSmarta Digital has filed a petition to initiate bankruptcy proceedings against Ola Electric Technology in the Bengaluru Bench of the National Company Law Tribunal.
- Ola Electric in the case says that she dismisses these allegations. She is taking legal advice in the case and will strictly challenge the allegations.
A few days ago raids were conducted on showrooms
On March 8, there were reports of Red on some of Ola’s showrooms. Transport officials had seized vehicles by closing several showrooms due to lack of trade certificate. Along with this, a show cause notice was also issued to the company by the Transport Department.
Ola Electric has opened 4,000 showrooms since 2022. According to the report, only about 3,400 showrooms of these are available. Out of 3,400, there were only 100 showrooms who had the necessary trade certificates under the Motor Vehicle Act.
More than 95% of the showrooms of the company do not have basic certification necessary to display, sell and offer their Test rides.
Company will remove more than 1,000 employees
Earlier, it was reported that Ola Electric would hire more than 1,000 employees and contract workers. The company wants to reduce its increasing deficit through this.
This job cut will affect several departments including procurement, fullfillment, customer relations and charging infrastructure. People familiar with the case had said that this retrenchment is part of the efforts of Ola Electric to control the cost.
70% dropped from all time high
After a listing of shares in August 2024, Ola’s stock has fallen by about 70% from its peak of Rs 157.53. The company’s shares have fallen by about 20% in the last one month. Apart from this, by December 2024, the company’s market share fell from 49% to 23%.
