Ola Electric Mobility (OLAE.NS), India’s leading electric scooter manufacturer, saw its shares plummet over 6% to a record low of 47.4 rupees this morning, down from its IPO price of 76 rupees in August 2024—a staggering 38% decline.

The trigger? An insolvency petition filed by Rosmerta Digital Services, a creditor of Ola Electric Technologies, alleging payment defaults. While the default amount remains undisclosed, Ola Electric has denied the claims and is seeking legal recourse, but investor confidence is shaken.

Since its much-hyped market debut, Ola Electric has struggled. Sales have slumped, with registrations dropping from 34,000 to 8,647 scooters between February 2024 and 2025, per government data.

The company reported a widened loss of 564 crore rupees in the October-December 2024 quarter, driven by dwindling demand and heavy discounts.

Adding to its woes, Ola has faced job cuts, regulatory scrutiny over service issues, and a restructuring of its sales and service networks to curb costs.

The insolvency petition, filed before the National Company Law Tribunal in Bengaluru, marks a new low. Rosmerta, a vehicle registration service provider, is one of two creditors (alongside Shimnit India) renegotiating terms with Ola amid its direct-to-consumer model. With shares now trading below 50 rupees, analysts question if Ola can reverse its fortunes. Despite its 35% market share in India’s electric two-wheeler segment, the company’s cash burn and operational challenges paint a grim picture. Can Ola steer out of this storm, or is it headed for a crash?