Ola Electric share price extended their losses for the third consecutive trading session on Tuesday, falling around 1% to an intraday low of ₹41.39. The decline came after two operational creditors initiated insolvency proceedings against the company's wholly owned subsidiary, Ola Electric Technologies Pvt. Ltd., before the Bengaluru bench of the National Company Law Tribunal (NCLT).
The latest legal development has added to investor concerns, with the stock continuing to remain under the Additional Surveillance Measure (ASM) framework on both the NSE and BSE amid heightened volatility.
According to regulatory developments, Sterling E-Mobility and Anevolve Mando eMobility have filed separate petitions under Section 9 of the Insolvency and Bankruptcy Code (IBC) against Ola Electric Technologies Pvt. Ltd.
The creditors have alleged unpaid operational dues amounting to approximately ₹40.6 crore. The petitions are currently before the Bengaluru bench of the National Company Law Tribunal (NCLT).
An insolvency petition under Section 9 of the IBC allows operational creditors to seek the initiation of the corporate insolvency resolution process against a company in the event of payment defaults. The tribunal will examine the petitions before deciding on their admissibility.
The fresh legal challenge comes at a time when Ola Electric shares are already under pressure due to continued regulatory scrutiny. The stock remains under the long-term Additional Surveillance Measure (ASM) framework imposed by the stock exchanges.
The ASM framework is designed to alert investors about stocks witnessing elevated price volatility or unusual trading activity. While inclusion in the framework does not imply any wrongdoing by the company, it requires investors to exercise greater caution while trading in the stock.
The combination of ongoing regulatory oversight and the latest insolvency proceedings has weighed on market sentiment, resulting in sustained selling pressure in the company's shares.
Read more: Apollo Micro Systems Share Price Falls Over 5%; Board Approves ₹3,322.23 Crore Fundraise.
Ola Electric's shares have remained under pressure as investors assess the potential impact of the insolvency petitions against its subsidiary. While the NCLT is yet to decide on the admissibility of the cases, the development adds another layer of uncertainty for the electric vehicle maker. Going forward, market participants will closely monitor the legal proceedings, the company's response, and any further regulatory updates that could influence investor sentiment.
Want to read stock market updates in Hindi? Angel One News gives comprehensive share market news in Hindi.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jul 7, 2026, 2:01 PM IST
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
