India’s leading electric two-wheeler manufacturer, Ola Electric Mobility Ltd., has settled its outstanding dues with vehicle registration service provider Rosmerta Group, leading to the withdrawal of insolvency petitions against the company.
Rosmerta Group confirmed in a statement that it had received INR 26.75 crore, covering the entire claim filed before the National Company Law Tribunal (NCLT) in Bengaluru. Following the settlement, Rosmerta filed a memorandum for withdrawal of petitions, effectively resolving the dispute.
"With the receipt of INR 26.75 crore, which consists of the entire claim raised before NCLT, Rosmerta Group companies are withdrawing their petitions before the NCLT, Bengaluru," the statement read. The group also clarified that no further legal disputes exist between the two parties, and their relationship will now be governed by a formal settlement agreement.
The legal battle originated when Rosmerta Digital Services Ltd., a company specializing in high-security number plates and vehicle registration, took Ola Electric to court over an alleged payment default of approximately INR 18-20 crore. The petition sought to initiate Corporate Insolvency Resolution Process (CIRP) under Section 9 of the Insolvency and Bankruptcy Code (IBC).
Ola Electric had strongly disputed Rosmerta’s claims and maintained that it was seeking appropriate legal advice to protect its interests. The resolution of this case offers relief to the company as it prepares for its public listing in the coming months.
Ola Electric Faces Regulatory Scrutiny
While Ola Electric has resolved this payment dispute, it continues to face regulatory scrutiny. The Central Consumer Protection Authority (CCPA) has reportedly sought additional documents from the company regarding over 10,000 consumer complaints related to its products and services.
As the company navigates legal and operational challenges, investors are closely watching its financial standing and valuation.
InvestingPro’s Fair Value Indicates Overvaluation
Despite the resolution of its legal battle, InvestingPro’s fair value feature suggests that Ola Electric’s stock is currently overvalued. The fair value of Ola Electric is estimated at INR 46.1 per share, reflecting a 17.3% downside potential from its current market price of INR 55.7.
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For investors looking to make informed decisions, InvestingPro offers precise valuation insights by using multiple financial models to determine realistic stock values. Investors can also access the valuation status of all listed companies to gauge whether a stock is overvalued or undervalued before making a move.
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