Shares of Bhavish Aggarwal-led Ola Electric Mobility Ltd tumbled 7% in intraday trade on Monday to hit their lowest amid an insolvency petition filed in National Company Law Tribunal’s (NCLT’s) Bengaluru Bench against its subsidiary by operational creditor Rosmerta Digital Services Ltd.

The insolvency plea, seeking initiation of the corporate insolvency resolution process (CIRP) against Ola Electric Technologies Pvt Ltd, a wholly-owned subsidiary of Ola Electric Mobility, alleges default in payment towards the services rendered by Rosmerta Digital.

Reacting to the development, shares of Ola Electric hit an all-time low of ₹46.94 on the BSE, bringing down the company’s market cap to around ₹20,500 crore.

Rosmerta provides registration services to automakers.

This comes weeks after Ola Electric announced the renegotiation of its contracts with vehicle registration agencies, a move that temporarily affected registration numbers on the Vahan portal during February. The negotiations aim to reduce costs and streamline the registration process, said Ola Electric.

Ola’s EV registrations in February stood at 8,647 units, according to Vahan. The pure-play automaker, however, claimed it sold more than 25,000 units in February with a market share of over 28%.

Last week, the electric two-wheeler manufacturer claimed savings of about ₹90 crore per month after rolling out an initiative last November to cut costs. The EV maker expects to achieve automotive segment EBITDA breakeven in the next quarter.

Ola Electric Mobility said it has finished implementation of its network transformation and opex reduction programme, a company-wide initiative launched in November 2024 with an aim to reduce cost and improve customer experience.

This programme has encompassed distribution network transformation projects like shutting all regional warehouses and shipping vehicles, spare parts and accessories from the factory directly to stores, automating registration and other processes, and productivity improvements in the sales and service network, the Bhavish Aggarwal-led company said. “In addition to cost savings, these changes have resulted in reducing average vehicle inventory from approximately 35 to 20 days, and reducing delivery time for customers from 12 days to 3-4 days,” it added.

Ola Electric recently announced its limited-time Holi flash sale offers for its popular S1 range of electric scooters. Under this special promotion, customers can avail discounts of up to ₹26,750 on the S1 Air and ₹22,000 on the S1 X+ (Gen 2), with the models now starting at ₹89,999 (ex-showroom), and ₹82,999, respectively. The company is also offering discounts of up to ₹25,000 on the rest of its S1 range, including all the scooters from its latest S1 Gen 3 range. With both S1 Gen 2, and Gen 3, the company has a vast portfolio of scooters across all price points ranging from ₹69,999 to ₹1,79,999 (after festive discount).