Ola Electric jumps 4% after Rosmerta Group withdraws NCLT petitions

Ola Electric’s share price increased 4% in Tuesday trading after the EV-focused company announced that Rosmerta Group had submitted documents to withdraw the petitions it had filed with the National Company Law Tribunal in Bengaluru, following an amicable settlement of all outstanding payments between its wholly owned subsidiary, Ola Electric Technologies Private Limited, and Rosmerta Group.

“Ola Electric has peacefully resolved all outstanding debts between its wholly owned subsidiary, Ola Electric Technologies Private Limited, and the Rosmerta Group. As a result, the Rosmerta Group has submitted a document seeking the removal of the petitions filed with the NCLT in Bengaluru. The situation has now been resolved. “Ola Electric remains committed to meeting its obligations and maintaining professional relationships with all stakeholders,” the business stated in an exchange filing.

Furthermore, the Rosmerta Group reported today that Ola Electric Technologies Private Ltd has paid all its outstanding bills. The Rosmerta Group entities have withdrawn their petitions from the NCLT in Bengaluru after paying ₹26,75,24,339/- for the complete claim presented. There are no more grounds of action between Rosmerta Group and Ola Electric, and their relationship will now be controlled by the Settlement Agreement agreed by both parties. Last week, the business disclosed in a regulatory filing that M/s. Rosmerta Digital Services Ltd, an Ola Electric Technologies Pvt Ltd operating creditor, has filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC).

Ola Electric’s share price today:

Ola Electric shares hit an intraday high of ₹58 each on the BSE. The price dropped to an intraday low of ₹55.53 per share. According to Anshul Jain, Head of Research at Lakshmishree Investment and Securities, Ola Electric’s share price developed a short-term bottom on March 18, with an open-low structure and a solid close supported by a 510% volume spike versus the 50-day EMA.

“The bullish momentum continued on March 21, with another volume jump of 5 times the 50-day EMA. The stock trades above the 10- and 20-day exponential moving averages, indicating a short-term rebound. The obvious upside goal for this rally remains the 50-day EMA around 64.5, representing major resistance,” Jain noted.