Cholamandalam Investment and Finance Co. on Wednesday denied reports claiming that the company's Executive Chairman Vellayan Subbiah is set to exit as part of "family ownership settlement".
The investment firm, in an official statement, said the speculation is "factually incorrect and entirely baseless." The company clarified that Vellayan Subbiah continues in his role as Executive Chairman of Cholamandalam Investment, under his duly approved five‑year term, which runs from April 1, 2025, to March 31, 2030.
The company confirmed that there is no change in the management control or ownership structure, which has been in place for the past several years.
"Vellayan Subbiah and M A M Arunachalam oversees Tube Investments of India, Cholamandalam Investment and Finance Company, CG Power and Industrial Solutions and their respective subsidiaries. The Group remains committed to the continuity and stability of its governance and management and maintain transparency. We request that this clarification be carried in order to correct the record and avoid the spread of misinformation," the company said in its regulatory filing.
The clarification came after a news publication reported that Subbiah had reached a settlement with other promoter branches to realign ownership across key Murugappa Group companies. Citing sources, the report suggested that as part of this arrangement, Subbiah would relinquish exposure to Cholamandalam Investment while consolidating his position in Tube Investments and CG Power.
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Shares of Cholamandalam Investment were trading 1.24% lower at Rs 1,732.7 apiece on the NSE at 2:16 pm, compared to a 0.12% decline in the benchmark Nifty 50.
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