Ola Electric shares decline as suppliers seek insolvency proceedings over ₹40 crore dues

Ola Electric Shares Fall For Third Day After Suppliers Seek Insolvency Action Over ₹40 Crore Dues

Shares of Ola Electric Mobility Ltd continued their downward movement on Tuesday, declining for the third straight session amid concerns over payment disputes with key suppliers. The stock fell more than 1% to ₹41.94 apiece on the NSE, extending its three-day decline to over 5%.The stock opened at ₹42.41 on Tuesday, compared with its previous close of ₹42.39 on Monday. The recent weakness comes after reports that two major suppliers of Ola Electric Technologies, the operating arm that contributes almost the entire revenue of Ola Electric Mobility, have initiated legal proceedings over unpaid dues.According to reports, Sterling E-Mobility Solutions and Anevolve Mando eMobility have approached the National Company Law Tribunal (NCLT) seeking insolvency proceedings against Ola Electric Technologies. The suppliers have alleged that the company failed to clear payments for components supplied to its electric vehicle operations. Filings submitted by Ola Electric Technologies with the Ministry of Corporate Affairs showed outstanding dues of ₹29.8 crore to Sterling E-Mobility and ₹10.8 crore to Anevolve Mando. The companies claimed that the payments remained overdue for more than 45 days, prompting them to seek legal remedies.However, sources familiar with the matter said the dispute is commercial in nature, with both sides having raised claims against each other. Ola Electric has reportedly raised concerns regarding the quality of certain supplied components, while suppliers are seeking settlement of pending payments.Sterling E-Mobility, a subsidiary of Sterling Tools Ltd, manufactures several EV components, including traction motors, motor control units and DC converters, which are essential parts of electric vehicle powertrain systems. Anevolve Mando eMobility, part of the Anand Group, supplies components such as traction motors, controllers, inverters and AC/DC converters.Ola Electric shares have remained volatile amid broader market concerns and company-specific challenges. The stock has declined over 6.57% in the past week, though it has delivered around 12% returns on a year-to-date basis and gained about 1% over the past year. Ola Electric Shares Fall 5% After Insolvency Pleas By SuppliersOla Electric Mobility made its stock market debut in August 2024, becoming one of India’s most closely tracked electric vehicle companies. The latest supplier dispute adds to investor concerns around operational execution and financial management as the company continues to scale its EV business.

2 hours ago

Ola Electric Shares Fall 5% After Insolvency Pleas By Suppliers

Ola Electric Mobility shares fell more than 5 per cent in intra-day trade on Monday, after a report said two suppliers of its operating arm had approached the National Company Law Tribunal (NCLT) seeking insolvency proceedings over alleged unpaid dues exceeding Rs 40 crore. Ola Electric share price dropped as much as 5.3 percent to an intra-day low of Rs 42.10 apiece.At noon, the stock was trading 5.02 percent lower, even as the benchmark Nifty index was up 0.78 percent.According to multiple reports, Sterling and Anevolve Mando, both suppliers to Ola Electric Technologies Private Limited, have approached the NCLT seeking insolvency proceedings against the company over unpaid dues of more than Rs 40 crore.The report, citing filings made by Ola Electric Technologies with the Ministry of Corporate Affairs (MCA), said dues of Rs 29.8 crore owed to Sterling and Rs 10.8 crore owed to Anevolve have remained unpaid for more than 45 days. The delayed payments reportedly prompted both companies to initiate insolvency proceedings before the tribunal.The NCLT's Bengaluru bench is scheduled to hear Sterling's petition on Monday, July 6, nearly a month after it heard Anevolve Mando's plea, according to the report.The development marks the latest supplier-related dispute involving the electric vehicle maker. It follows a similar insolvency petition filed in 2025 by one of the company's vehicle registration agencies over payment-related issues.Over the last five days, the shares were nearly flat, gaining Rs 1.14, or 2.79 per cent.Over the last one month, the shares declined by Rs 2.39, or 5.38 per cent. Over the last six months, the stock delivered a negative return, falling by Rs 1.54, or 3.53 per cent.

22 hours ago