Ola Electric share price surged 10 per cent in early trade on March 18, a day after hitting its all-time low on Monday.
Shares of Ola Electric Mobility Ltd rose 10.01 per cent to hit an intraday high of Rs 51.63 per share on the NSE. A total of 40.32 lakh shares of Ola Electric Mobility Ltd were traded on the BSE today, leading to a total turnover of Rs 20.29 crore. In terms of volume, over 8 crore shares of the company were traded on the NSE till 12 noon.
The market valuation of the company rose by Rs 2,421.55 crore to Rs 23,112.75 crore from Rs 20,691.20 crore a day earlier.
The sharp jump comes after the stock fell over 7 per cent on Monday, when the company said its vehicle registration service provider Rosmerta Digital Services Ltd has sought initiation of insolvency proceedings against its wholly-owned arm Ola Electric Technologies Pvt Ltd.
“A petition has been filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) by M/s Rosmerta Digital Services Ltd, an operational creditor of Ola Electric Technologies Pvt Ltd,” the company said in a regulatory filing on Saturday. The petition has been filed before the Bengaluru bench of the National Company Law Tribunal, alleging default in payments for services rendered by the operational creditor and seeking initiation of corporate insolvency resolution process (CIRP) against Ola Electric Technologies Pvt Ltd.
The insolvency proceedings come at a time when Ola Electric Mobility is cutting around 1,000 jobs across various functions as part of a restructuring exercise to mitigate losses.
