Shares of Ola Electric rose about 5% on Tuesday after the Bombay High Court stayed a bailable arrest warrant issued against its CEO Bhavish Aggarwal, offering much-needed relief to the company and its investors.
The stock, which had been under heavy selling pressure in recent sessions, witnessed strong buying during the day and climbed to an intraday high of around ₹29. This comes after it had fallen to a record low in the previous trading session, reflecting the sharp volatility in the counter.
The legal case originated from a consumer complaint filed before the South Goa District Consumer Disputes Redressal Commission. The commission had issued a bailable warrant against Aggarwal after he did not appear before it in connection with the matter despite receiving summons.
However, the High Court, while granting interim relief, observed that the consumer forum had gone beyond its jurisdiction under the Consumer Protection Act while passing the order. Following the court’s decision, the company informed exchanges about the development and advised stakeholders to take note of the updated legal status.
The court’s intervention eased concerns about possible leadership uncertainty and legal overhang, which had weighed on investor sentiment. The positive development also led to a surge in trading volumes, indicating renewed interest in the stock.
Despite the sharp single-day recovery, Ola Electric’s shares remain significantly lower compared to their earlier levels. The company has been facing pressure due to weak financial performance, including a notable decline in revenue in the December quarter and widening losses. These factors have contributed to the stock’s underperformance against the broader market so far this year.
The latest relief from the High Court has provided a temporary breather for the electric vehicle maker. However, the consumer dispute is yet to be fully resolved, and further legal proceedings are expected in the coming months.
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