Ola Electric Share Price Jumps 5% After Bombay High Court Stays Arrest Warrant Against CEO Bhavish Aggarwal

Mumbai: Shares of Ola Electric Mobility Ltd. rose on Wednesday after the Bombay High Court stayed an arrest warrant issued against its CEO Bhavish Aggarwal. The stock snapped a four-day losing streak following the legal relief.

High Court Stays Arrest Warrant

The arrest warrant had been issued by the District Consumer Commission, South Goa. The court action came after Aggarwal allegedly failed to appear before the commission despite receiving notice.

In its statement, Ola Electric said the High Court not only stayed the warrant but also observed that the consumer commission had exceeded its powers under the Consumer Protection Act while issuing the order.

The company urged media organisations to avoid speculation and focus on the legal facts. It said the High Court had clearly stayed the warrant and questioned the commission’s jurisdiction.

What Is The Case About?

The case relates to a complaint filed by Pritesh Chandrakant Ghadi. He alleged that his Ola S1 Pro Second Generation scooter continued to face issues even after repairs.

The complainant has sought a refund of Rs 1.47 lakh and an additional Rs 50,000 for harassment and mental distress.

Stock Recovers After Recent Weakness

Ola Electric shares were already under pressure due to weak performance and brokerage downgrades. On Wednesday morning, the stock was trading around Rs 29, up 3.6 percent.

In the previous session, the shares had fallen 2.5 percent to Rs 28.11 after touching a fresh 52-week low of Rs 27.36. The stock had declined for four straight trading sessions before Wednesday’s recovery.

Brokerage firm Citi recently downgraded the stock to “sell” from “buy” and cut its target price by 51 percent to Rs 27 from Rs 55.

Citi cited slower growth in electric vehicle adoption in India’s two-wheeler market. It also pointed to GST cuts on petrol vehicles, which reduced the price gap between electric and traditional scooters. The brokerage flagged service issues, strong competition and weak customer perception as key concerns.

The company’s December quarter results were also below expectations, mainly due to weak operating performance.