(Reuters) -Shares of India’s Ola Electric Mobility slid more than 6% to a record low on Monday after the company said one of its units faced an insolvency petition from a creditor.
Its shares fell as much as 6.2% to 47.4 rupees as of 10:01 a.m. IST and have fallen about 38% from its IPO price of 76 rupees in August 2024. The stock was last trading 5.4% lower.
Rosmerta Digital Services, a vehicle registration service provider and a creditor of Ola Electric Technologies, filed a petition against the unit alleging default in payments, the electric scooter maker said on Saturday. It did not specify the size of the default.
Ola Electric denied the claims and said it had sought legal advice.
Since its high-profile stock market debut, Ola Electric has faced challenges, including declining sales and increased regulatory scrutiny.
Media reports said the company has cut jobs at least twice since November and is now restructuring its sales and service networks, focusing on cost reductions and inventory management.
Seven brokerages rate the stock “hold”, on average, with a median price target of 73 rupees, per data compiled by LSEG.
In the October-December quarter, the company posted a wider loss of 5.64 billion rupees ($64.9 million) due to dwindling demand and deep discounts to attract customers.
($1 = 86.8625 Indian rupees)
(Reporting by Manvi Pant in Bengaluru; Editing by Mrigank Dhaniwala and Sonia Cheema)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibility for its content.