Ola Electric Mobility Shares Gain Nearly 3% In Early Trade After Company Approaches Sebi To Settle Proceedings

Shares of Ola Electric Mobility gained nearly 3 per cent to trade at an intraday high of Rs 44.21 apiece on the NSE on June 17. The stock is set to be in focus today as Ola Electric and the two-wheeler manufacturer’s founder-chairman, Bhavish Aggarwal, have approached the Securities and Exchange Board of India (Sebi).

The founder is seeking to settle Sebi’s proceedings related to allegations of the company disseminating false and misleading information to potentially inflate the stock price, according to a report by the Economic Times.

Why Was the Settlement Application Filed?

The report claimed that the settlement application was filed earlier this year on April 23 and the company seeks to resolve the matter "without admission or denial" of facts and legal conclusions. Reportedly, the allegations made by the regulator in its April 10 notice related to misleading information on the company’s service network expansion, sales performance, and electric motorcycle rollout timelines.

According to the report, the company has detailed explanations for the allegations but is seeking an amicable closure to avoid prolonged litigation. Prior to the settlement application, Sebi investigated disclosures made by Ola Electric between its August 2024 stock market listing and May 2025 after sending a notice.

In its notice, the regulator alleged violations of the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations and the Listing Obligations and Disclosure Requirements (LODR) Regulations.

The report cited sources close to the company who said the electric two-wheeler maker has held three rounds of discussions with Sebi officials following the show-cause notice issued in April over discrepancies related to sales and registration numbers.

What Sebi Alleged in Its Order

Sebi has made three key allegations in its order according to the report. These include discrepancies related to service network expansion, misleading sales disclosures and delays in releasing its electric motorcycle compared to the timeline mentioned by the company.

Allegations Related To Service Network Expansion

Sebi alleged that Ola Electric made announcements in December 2024 claiming a rapid expansion of its sales and service network. The electric vehicle manufacturer had also announced via exchange filings that it planned to expand its physical presence to 4,000 locations by December 25, 2024. Of these 4000 stores as many as 3,200 would be new stores co-located with service centres.

However, Sebi has reportedly alleged that Ola Electric's claimed service network expansion and its physical store presence did not match. While the company announced on December 25, 2024, that it had opened more than 3,200 stores co-located with service centres, data later submitted to the regulator showed only 452 such outlets as of February 19, 2025, compared with 429 at the time of its IPO. According to Sebi, only 23 additional co-located service centres had effectively been added since listing.

The regulator noted that Ola repeatedly highlighted this expansion through exchange filings and social media posts, including statements by Bhavish Aggarwal that “all stores have service capacity too” and references to “4,000 Ola stores & service centres”. According to the report, the regulator stated in the notice that the disclosures came as criticism raged online over after-sales service and regulatory scrutiny and the company’s shares rose 8.45 per cent intraday following the announcement indicating that investors reacted positively to the announcement.

Misleading Sales and Order Disclosures

In the notice, Sebi has also questioned Ola's February 2025 disclosure that it had sold more than 25,000 electric two-wheelers and holds more than 28 per cent market share.

According to the report, Sebi has alleged that the cited figure of 25,207 showed confirmed customer orders instead of actual completed sales. Of the 25,207 orders, only 5,341 vehicles were registered and revenue was recognized on just 2,848 vehicles. Thus the company switched from reporting registrations to orders without adequately disclosing the change.

It also flagged claims that nearly 90 per cent of orders were fully paid, noting advance payments accounted for about 68 per cent of total order value and only 61 per cent of orders had received payments exceeding 90 per cent.

Delays in the Roadster Motorcycle Timeline

The market watchdog has also alleged that for the Roadster motorcycle programme, Ola failed to adequately disclose delays and pending prototype approvals despite committing deliveries by March 2025.

The regulator also alleged that Ola announced Roadster X deliveries had commenced in May 2025 even though no deliveries took place that month. Aggarwal later acknowledged deliveries began only in June.

Ola Electric Share Price History

Ola Electric shares made their D-street debut on August 9, 2024, at a listing price of Rs 76 per share. Since its August 2024 debut the stock has fallen significantly, touching an all-time low of Rs 22.25 in March 2026.

In the past one year the stock has slipped approximately 5.6 per cent from its listing price and has traded below its listing price.

So far in 2026, the stock has stabilised and has gained about 15.03  per cent. In June the stock has gained nearly 9.18 per cent. At the time of writing the company’s shares are trading at Rs 43.47 apiece on the NSE up by 0.93 per cent.