New Delhi, Oct 8 (PTI) Shares of Ola Electric Mobility on Tuesday pared early losses to end more than 5 per cent higher a day after consumer rights body CCPA issued a show cause notice to the EV maker for alleged violation of misleading advertisement and unfair trade practices.
Snapping the three-day losing run, the stock of the company advanced 5.15 per cent to close at Rs 95.50 apiece on the NSE.
On the BSE, it rose 5.11 per cent to end at Rs 95.46 per piece. During the day, shares of EV maker Ola Electric fell 6.17 per cent to hit an intraday low of Rs 85.21 apiece on the exchange.
In volume terms, 1.3 crore equity shares of Ola Electric Mobility were traded on the BSE while 11.33 crore shares exchanged hands on the National Stock Exchange (NSE), during the day.
The 30-share BSE Sensex rose 584.81 points or 0.72 per cent to close at 81,634.81, and NSE Nifty climbed 217.40 points or 0.88 per cent to settle at 25,013.15.
In a regulatory filing on Monday, Ola Electric Mobility said it has received a show cause notice from the Central Consumer Protection Authority (CCPA) for alleged violation of consumer rights, misleading advertisement and unfair trade practices.
Further, the CCPA has provided a timeline of 15 days for the company to respond to the show cause notice.
However, the company clarified that the show cause notice has no impact on its financial, operational or other activities.
The show cause notice which is issued by the authority does not impose any penalties or financial fines, the filing said.
On Monday, Ola Electric Mobility's shares declined up to 10 per cent before settling lower by 8 per cent amid reports of service quality issues of its electric scooters and its CEO's spat on social media.
Ola Electric has been losing market share to legacy auto players like Bajaj Auto and TVS Motor as they ramp up their push within the EV space.