New Delhi, March 17 -- Ola Electric share price slumped by almost 4% during Monday's trading session after Rosmerta Digital Services Ltd, its vehicle registration service provider, announced on Saturday that it intends to initiate insolvency proceedings against its wholly-owned subsidiary, Ola Electric Technologies Pvt Ltd.

In a regulatory submission, the company announced that M/s. Rosmerta Digital Services Ltd, which is an operational creditor of Ola Electric Technologies Pvt Ltd, has filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC).

The petition has been presented to the Bengaluru Bench of the National Company Law Tribunal, claiming that there has been a default in payments owed for services provided...