Shares of (Cholamandalam Investment) rallied 8 per cent before settling with 6 per cent increase after the company issued a clarification to addressing allegations made in an online blog post against the company, its subsidiaries and certain Murugappa Group entities.
The stock settled at ₹1,678.50 with 6 per cent gains, after hitting a high of ₹1,713.40. It opened at ₹1,605 against the previous close of ₹1,584.90.
The market cap stood at ₹1.42 lakh crore, as per the NSE.
In a disclosure filed under Regulation 30 of the Listing Regulations, Cholamandalam Investment said the allegations were “malicious and baseless” and motivated by ulterior intent. The company stated that it had issued the clarification to avoid market speculation while it examines the claims.
Strong liquidity, capital adequacy reiterated
Cholamandalam Investment said its financial performance, asset quality and liquidity position remain robust, as reflected in its audited financial statements for the half year ended September 2025. The company added that there is no change to the guidance previously provided and that it continues to operate in line with its board-approved business plan.
According to the company, its liquidity position remains strong, with cash and bank balances of ₹14,900 crore as of November 30, 2025. Asset-liability management across time buckets continues to be positive. The capital adequacy ratio stood at 19.79 per cent, with Tier I capital at 14.53 per cent, comfortably above statutory requirements. Cholamandalam Investment also said its credit ratings remain unchanged at AA+ from ICRA, India Ratings and CARE.
The company further highlighted that its net worth rose to ₹26,783 crore as of November 30, 2025, marking an increase of over ₹3,000 crore from the close of FY25. This includes the conversion of ₹300 crore of compulsorily convertible debentures issued in FY24, with the remaining ₹1,700 crore expected to be converted over the next three quarters, which the company said would further strengthen its balance sheet.
Clarifications on cash deposits and related party transactions
Addressing specific allegations, Cholamandalam Investment explained that large cash deposits arise from its borrower profile, which largely consists of small road transport operators and self-employed individuals in rural and semi-urban areas. The company said cash collections, including EMI payments, are deposited into banks and are subject to internal controls, statutory audits and full compliance with KYC and income tax regulations.
On related party transactions, the company stated that all such dealings are fully disclosed in its financial statements and carried out in compliance with applicable laws. It cited insurance-related transactions with group entities as being primarily aimed at protecting borrowers against health and accident-related risks while also safeguarding the company’s loan portfolio.
Cholamandalam Investment also rejected claims that individuals benefited improperly from these transactions, stating that all payments to board members and senior management have been made in line with legal requirements and transparently disclosed to shareholders.
Commitment to compliance and transparency
The company further clarified that payments to rating agencies are standard industry practice and linked to borrowing levels, while corporate social responsibility spending is carried out through monitored work contracts as mandated by law.
Cholamandalam Investment said that distorted facts and industry practices had been selectively presented in the blog post. The company reiterated that all its operations are conducted in compliance with regulatory guidelines and applicable laws.
“We are committed to transparent communication with our investors and other stakeholders,” the company said, adding that it reserves the right to take action against the agency responsible for the allegations for reputational damage.