Ola Electric shares, after hitting another low yesterday, that is, Monday, March 18, surged in the opening hours of the trading day on Tuesday.

The company shares sank by more than 7 per cent on Monday, after Gurgoan-based Rosmerta Digital Services Ltd., filed a petition against the Bhavish Aggarwal company company at the National Company Law Tribunal (NCLT), Bengaluru.

Ola Shares Roar

Rosmerta also petitioned to initiate corporate insolvency proceedings against Ola Electric.

Following this, the company shares opened to a meteoric rise on Tuesday.

At the time of writing, the company shares zoomed by a colossal 5.26 per cent or Rs 2.47, inching closer to attaining the milestone mark of Rs 50 per share.

This has taken the overall value of the company shares to 49.40 per piece. The shares closed at Rs 46.93 in the previous trading session. It hit another all-time low of Rs 46.37 per piece.

Ola Electric's Troubles

The insolvency scare is the latest in the series of issues that have give headache to Bhavish Aggarwal and Co.

It was just last week when the company shares once again tumbled after reports emerged that authorities have conducted raids across different Ola showrooms over violation of licensing laws. Many showrooms in parts of northern India were voluntarily closing, fearing raids.

The company has managed to put up thousands of stores in the past year, taking a different direction from its previous online-only approach.

However, this has come at a cost, as the precipitously done expansion of physical showrooms may have allegedly come in the dearth of adequate certification, as per reports .

When we look at the company's recent performance at Dalal Street, the company shares have declined by a cumulative of 57.67 per cent or Rs 67.45 per piece in the past 6 months of trade at the National Stock Exchange.