Synopsis: Large-cap company’s Shares plunged nearly 7% in early trade following media speculation about a potential leadership exit, but recovered sharply after the company issued an official clarification denying the rumours and reaffirming management continuity.
A large-cap company that is one of the premier diversified non-banking finance companies in India, engaged in providing vehicle finance, home loans and Loan against properties has come into focus after stock crashes over 7 percent.
With the market capitalization of Rs. 1,47,316.72 crore, the shares of Cholamandalam Investment & Finance Company Limited were trading at Rs. 1,729.70, down by 0.84 percent from its previous day’s close price of Rs. 1,754.50 per equity share.
Shares of Cholamandalam Investment and Finance Company fell sharply by nearly 7 percent in early trade after a media report claimed that Vellayan Subbiah would exit the company as part of a Murugappa family settlement. The report triggered panic selling, with investors reacting swiftly to concerns over potential changes in leadership and promoter alignment.
Official Clarification to Exchanges
In response, the company issued a formal clarification to the stock exchanges, stating that the speculation mentioned in the article is “factually incorrect and entirely baseless.” The statement from the office of Vellayan Subbiah clearly confirmed that he continues to serve as the Executive Chairman of the company.
It further clarified that his appointment remains valid for a five-year term from April 1, 2025 to March 31, 2030, as previously approved. The company also reiterated that it is fully compliant with SEBI’s disclosure norms and will inform exchanges promptly if any material event occurs.
No Change in Management Structure
The clarification emphasised that there is no change in the company’s management control structure or ownership. The existing leadership framework remains intact, and there are no developments requiring disclosure at this stage. The company stressed its continued commitment to governance stability, transparency, and long-term continuity.
Stock Recovers From Intraday Lows
From its previous closing price of Rs. 1,754.50, the stock slipped sharply to an intraday low of Rs. 1,628, marking a decline of approximately 7.21 percent during early trade. The steep fall came amid investor reaction to the media report suggesting a potential leadership change.
However, following the company’s official clarification denying the rumours, the stock recovered significantly from the day’s low and was last seen trading around Rs. 1,730. Although still marginally below the previous close, the sharp rebound indicates that investor sentiment improved after management addressed the speculation.
About the Company & Financial
Cholamandalam Investment and Finance Company Limited is a non banking finance company in India that provides a wide range of loans and financial services. Its main businesses include vehicle finance, loans against property, home loans, and other retail and SME loans. The company offers loans for commercial and passenger vehicles, two and three wheelers, tractors, construction equipment, personal and business loans, and gold loans.
The company reported revenue of Rs. 7,898 crore in Q3FY26, registering a year on year growth of around 17.3 percent compared to Rs. 6,733 crore in Q3FY25. On a sequential basis, revenue increased by about 5.4 percent from Rs. 7,491 crore in Q2FY26, reflecting steady quarter on quarter expansion.
Net profit came in at Rs. 1,290 crore in Q3FY26, marking an 18.6 percent rise over Rs. 1,088 crore in Q3FY25. On a sequential basis, profit increased by 11.2 percent from Rs. 1,160 crore in Q2FY26, showing consistent growth in bottom line performance.
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