Cholamandalam Refutes Report on Vellayan Subbiah’s Exit; Shares Pare Losses

Cholamandalam Investment and Finance Company has clarified that reports claiming Executive Chairman of the non-banking financier, Vellayan Subbiah, is stepping down are “factually incorrect and baseless,” the company said in a press release on Thursday.

A report published by Moneycontrol earlier stated that the financier had reached a settlement with other promoter branches to realign ownership across key group companies.

“The speculation in the article is factually incorrect and entirely baseless. We would like to categorically state that Mr Vellayan Subbiah continues to be the Executive Chairman of Cholamandalam Investment and Finance Company in accordance with his duly approved appointment for a five-year term from April 1, 2025, to March 31, 2030,” the press release said.

The lender also confirmed that there is no change in the management control structure or ownership of the Group’s businesses. “The Group remains committed to the continuity and stability of its governance and management and to maintaining transparency,” Subbiah said in the statement.

The Moneycontrol report suggested that the agreements would lead Subbiah to give up stake exposure linked to Cholamandalam Investment and Finance while consolidating his position in Tube Investments of India and CG Power and Industrial Solutions.

Following the report, shares of the private lender fell 2.5% in early trade. However, after the clarification, shares pared some of the losses by 1:00 pm.

According to the Moneycontrol report, after negotiations spanning over two years, the agreement forms part of a broader plan by the Murugappa family to separate ownership of the conglomerate among three promoter factions while ensuring business continuity.

Cholamandalam is now a leading non-banking financial company with a market capitalisation of over ₹1 lakh crore.

The report added that tensions arose due to steep divergence in valuations across group companies. Uneven appreciation in these businesses complicated efforts to divide three equal promoter blocs, with one faction seeking revisions to earlier share-swap assumptions and another resisting the reopening of agreed terms, citing sources.

Subbiah is widely credited with strengthening the revival of CG Power and expanding Tube Investments into new manufacturing and mobility segments.