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Ola Electric slips after receiving warning letter from SEBI

08-Jan-25 11:46 Hrs IST

The company committed an infraction of SEBI's LODR regulations, 2015, by contravening regulations 4(1)(d), 4(1)(f), 4(1)(h), and 30(6).

As per regulation 30(6)(ii) of the LODR prescribes that the listed entity shall first disclose to the stock exchange(s) all events or information which are material in terms of the provisions of this regulation as soon as reasonably possible and in any case not later than... twelve hours from the occurrence of the event or information, in case the event or information is emanating from within the listed entity.

On 2nd December 2024, the company informed the exchanges at 1:36 PM (BSE) and 1:41 PM (NSE) about its plans for a four-fold expansion of its company-owned store network by 20th December 2024. However, the promoter and chairman-cum-managing director, Bhavish Agarwal, shared this information on a social media platform at 9:58 AM on the same day, before notifying the stock exchanges.

According to a warning letter from SEBI, it was noted that this information was not initially disclosed to the stock exchanges, and the disclosure was not made as soon as reasonably possible.

Meanwhile, the company said that the Hon'ble Karnataka High Court has granted an extension of six weeks to submit the response in respect of seeking additional documents and information by the Central Consumer Protection Authority (CCPA). The company will ensure a timely response within the specified timeframe.

Earlier on 7 October 2024, the company had received show cause notice from the Central Consumer Protection Authority for alleged violation of consumer rights, misleading advertisement and unfair trade practices.

Ola Electric is a leading Indian EV manufacturer focused on vertical integration, overseeing the entire production process from battery cells to final vehicles. Its Futurefactory in Tamil Nadu is a key production hub, supported by global R&D efforts and the Battery Innovation Centre in Bengaluru. Ola's direct-to-customer sales model, with a vast network of physical and online stores, ensures wide accessibility and a seamless customer experience.

Ola Electric Mobility reported net loss of Rs 495 crore in Q2 FY25 as against net loss of Rs 524 crore in Q2 FY24. Revenue from operations jumped 38.39% to Rs 1,240 crore in Q2 FY25 compared with Rs 896 crore in Q2 FY24.