Cholamandalam Investment rises 6% after dismissing governance allegations

Cholamandalam Investment and Finance, through a filing, has reassured its investors that the performance of the company, its asset quality and its liquidity position continue to be robust as disclosed

Cholamandalam Investment and Finance Company shares gained 6.4 per cent on BSE, registering an intra-day high of ₹1687.5 per share. The buying on the counter came after the company waved off rumours of corporate governance issues.

 

At 10 AM, Cholamandalam Investment’s share price was trading 5.81 per cent higher at ₹1676.85 per share on BSE. In comparison, the BSE Sensex was down 0.18 per cent at 85,412.91. 

 

The company has a total market capitalisation of ₹1,41,501.57 crore. Its 52-week high was at ₹1,780.9, and its 52-week low was at ₹1,167.6. 

 

Cholamandalam Investment and Finance Company, through a filing, has reassured its investors that the performance of the company, its asset quality and its liquidity position continue to be robust as disclosed in the audited financial statements of the company for the half year ended September 2025. There is no revision in its guidance provided in the past, and the company will continue to deliver as per its board-approved business plan.

 

“Allegations have also been made that certain individuals are benefitting from the above transactions. The company categorically rejects such statements. All payments to board members, key managerial personnel and senior management personnel of Cholamandalam Investment and Finance Company have been made in compliance with applicable law and have been fully disclosed to the shareholders of the company,” the filing read. 

 

It added: Distorted facts have been presented selectively, industry practices have been twisted for the benefit of this agency. We confirm that all the operations of the company are carried out as per the laws of the land, following due compliance of applicable regulatory guidelines.

 

According to media reports, a sum of about ₹10,262 crore worth of related-party transactions, including those with Murugappa Group entities, has been flagged as meriting closer regulatory scrutiny. The reports also highlight that the Murugappa Group allegedly reported cash deposits of around ₹25,089 crore over the last five years, which Cobrapost terms “high, unusual, and indicative of asset quality risks for Cholamandalam Investment and Finance.”

 

Further, reports have raised red flags over a sharp increase in auditors’ fees and related-party disclosures at both Cholamandalam Investment and Finance Company and Chola MS Insurance, alleging instances of non-disclosure and non-compliance, including about ₹942 crore reported as commission income from selling insurance between FY24 and FY25. The report additionally voices concerns over payments to Murugappa family members—described as “too high”—as well as significant payments to credit rating agencies, according to these accounts.