Ola Electric shares slide 5% as suppliers move NCLT

What happened to Ola Electric stock on July 6

Shares of Ola Electric Mobility fell during trade on Monday, July 6, after a report said two suppliers had approached the National Company Law Tribunal (NCLT) seeking insolvency proceedings. The stock dropped 5.3% intraday to ₹42.1 per share. By 1:06 pm, it was trading 5.02% lower, even as the Nifty 50 index was up 0.78%. The move extended a negative run in the counter amid repeated headlines linked to vendor disputes.

Reported NCLT moves by two suppliers

According to a Mint report citing court filings and people aware of the development, two suppliers of Ola Electric Technologies Pvt Ltd moved the NCLT urging insolvency proceedings. The report pegged the unpaid dues at over ₹40 crore. Ola Electric Technologies Pvt Ltd is described as the operating arm of Ola Electric Mobility Ltd.

The report, citing filings with the Ministry of Corporate Affairs (MCA), said dues of ₹29.8 crore to Sterling and ₹10.8 crore to Anevolve had been pending for over 45 days. On that basis, the suppliers sought insolvency proceedings. The NCLT’s Bengaluru bench was reported to be hearing Sterling’s petition on Monday, July 6, nearly a month after hearing Anevolve Mando’s plea.

What an insolvency petition seeks in practice

The filings referenced in the broader coverage describe creditor petitions that seek initiation of a Corporate Insolvency Resolution Process (CIRP). In similar cases cited in the material provided, petitions were filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, which is used by operational creditors alleging payment defaults for services rendered.

In the Rosmerta matter described elsewhere in the provided text, Ola Electric said it disputed the claims and sought legal advice to challenge allegations. The same set of reports also underscores that such petitions, even before any final outcome, can weigh on sentiment because they highlight working-capital stress and vendor relationship risks.

This is not the first supplier dispute in the news flow

The July 6 development was described as the latest supplier dispute following a similar petition filed by a registration agency in 2025. Rosmerta Digital Services had filed an insolvency plea against Ola Electric Technologies over alleged payment defaults. The petition sought to initiate CIRP against the wholly owned subsidiary.

Ola Electric, according to the text provided, disputed those claims and planned legal action while also restructuring contracts, managing layoffs, and targeting Ebitda profitability in the next quarter. Separately, Ola Electric later told stock exchanges that the Rosmerta Group filed a memo for withdrawal of petitions at the NCLT, Bengaluru, after an amicable settlement of outstanding dues between Ola Electric Technologies and the Rosmerta Group. The company said the matter stood fully resolved and that it remained committed to fulfilling obligations to stakeholders.

Stock performance context: IPO, all-time lows, and volatility

Several performance markers in the provided material show the extent of the stock’s drawdown since listing. Since its market debut in August 2024, Ola Electric’s stock has fallen nearly 65% from its peak. In another Reuters excerpt included in the input, the stock fell as much as 6.2% to ₹47.4 and was noted as being down about 38% from its IPO price of ₹76.

There have also been sharp single-day swings around insolvency-related updates. On Tuesday, March 25, shares rose 4.12% intraday to ₹58 after a settlement update, then reversed, falling 6.34% from the day’s high to a low of ₹54.32. The mixed reaction illustrates that investors have been balancing near-term relief from resolved disputes against the persistence of recurring vendor issues.

Operational and regulatory overhangs highlighted in reports

Beyond tribunal-related headlines, the text provided points to business pressures and scrutiny. It says Ola faces stiff competition from established two-wheeler manufacturers and increasing regulatory scrutiny. It also states that sales of Ola scooters have dropped to less than half of what they were in April of the previous year, alongside deepening losses.

The material also references customer videos posted on social media alleging scooters catching fire or malfunctioning. In addition, it says the government is investigating hundreds of newly launched Ola showrooms regarding licensing and registration practices. The cumulative effect of these issues, as reflected in the repeated negative news flow cited, has kept attention on execution quality and compliance.

What the July 6 headline signals for investors

The immediate trigger for the day’s drop was the report of supplier petitions and the size of the alleged dues. With the benchmark index up on the day, the relative underperformance highlighted stock-specific concerns. The reference to MCA filings and the “over 45 days” pendency adds detail that markets typically watch closely in vendor disputes.

At the same time, the Rosmerta settlement shows that disputes can be resolved outside the tribunal process. But the recurrence of separate supplier claims, as described, increases the focus on payment timelines and vendor continuity, particularly for a pure-play EV company relying on multiple operational partners.

Key facts at a glance

Conclusion

Ola Electric’s July 6 slide followed reports that two suppliers approached the NCLT seeking insolvency proceedings over alleged unpaid dues at Ola Electric Technologies. The company has previously said it disputes similar claims and has also disclosed settlements that led to petition withdrawals. The next identifiable milestones, based on the text provided, are hearings at the NCLT Bengaluru bench and any further exchange filings that clarify the status of supplier claims and settlements.