Cholamandalam
Cobrapost report fails to spook investors: Cholamandalam stock jumps 6%
Mumbai/IBNS: Shares of Cholamandalam Investment and Finance Company Ltd on Tuesday rose nearly 6 per cent, recovering losses from the previous session, after the Murugappa Group issued a clarification rejecting allegations made by investigative portal Cobrapost, media reports said.
The stock rebounded after sliding on Monday following the publication of Cobrapost’s report.
Cobrapost, in its exposé, alleged a pattern of cash transactions and related-party dealings involving Cholamandalam Investment & Finance Company Ltd (CIFCL), a key non-banking financial arm of the Murugappa Group.
The report claimed that cash deposits amounting to around Rs 25,000 crore were routed through multiple banks over several years. It also flagged alleged related-party transactions exceeding Rs 10,000 crore across CIFCL, its insurance arm and other group entities, raising questions over disclosures and corporate governance practices.
Cobrapost further suggested that certain commissions and payments linked to insurance and services businesses may warrant closer scrutiny.
Responding to the allegations, Cholamandalam Investment & Finance categorically denied the claims, terming the Cobrapost report “malicious and baseless”, and said the company remains fully compliant with all applicable laws and regulations.
In exchange filings, the company stated that its performance, asset quality and liquidity remain robust, and clarified that there has been no change in its previously communicated business guidance.
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