Ola Electric Shares Fall For Third Day After Suppliers Seek Insolvency Action Over ₹40 Crore Dues

Shares of Ola Electric Mobility Ltd continued their downward movement on Tuesday, declining for the third straight session amid concerns over payment disputes with key suppliers.

The stock fell more than 1% to ₹41.94 apiece on the NSE, extending its three-day decline to over 5%.

The stock opened at ₹42.41 on Tuesday, compared with its previous close of ₹42.39 on Monday. The recent weakness comes after reports that two major suppliers of Ola Electric Technologies, the operating arm that contributes almost the entire revenue of Ola Electric Mobility, have initiated legal proceedings over unpaid dues.

According to reports, Sterling E-Mobility Solutions and Anevolve Mando eMobility have approached the National Company Law Tribunal (NCLT) seeking insolvency proceedings against Ola Electric Technologies.

The suppliers have alleged that the company failed to clear payments for components supplied to its electric vehicle operations.

Filings submitted by Ola Electric Technologies with the Ministry of Corporate Affairs showed outstanding dues of ₹29.8 crore to Sterling E-Mobility and ₹10.8 crore to Anevolve Mando. The companies claimed that the payments remained overdue for more than 45 days, prompting them to seek legal remedies.

However, sources familiar with the matter said the dispute is commercial in nature, with both sides having raised claims against each other. Ola Electric has reportedly raised concerns regarding the quality of certain supplied components, while suppliers are seeking settlement of pending payments.

Sterling E-Mobility, a subsidiary of Sterling Tools Ltd, manufactures several EV components, including traction motors, motor control units and DC converters, which are essential parts of electric vehicle powertrain systems.

Anevolve Mando eMobility, part of the Anand Group, supplies components such as traction motors, controllers, inverters and AC/DC converters.

Ola Electric shares have remained volatile amid broader market concerns and company-specific challenges. The stock has declined over 6.57% in the past week, though it has delivered around 12% returns on a year-to-date basis and gained about 1% over the past year.

Ola Electric Mobility made its stock market debut in August 2024, becoming one of India’s most closely tracked electric vehicle companies. The latest supplier dispute adds to investor concerns around operational execution and financial management as the company continues to scale its EV business.