Cholamandalam Investment Share Price Declines 2.5% Amid Vellayan Subbiah's Exit Amid Murugappa Family Settlement

Cholamandalam Investment & Finance Company Ltd Share Price Falls Amid Re-alignment of Murugappa Group Promoter Ownership

Key Developments

Shares of Cholamandalam Investment & Finance Company Ltd traded 2.5% lower on February 26, following reports of a settlement between Vellayan Subbiah, scion of the Murugappa Group, and other promoter branches to re-align ownership across key group companies.

Settlement Details

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The agreement, finalised after over two years of negotiations, enables Vellayan Subbiah to relinquish stake exposure linked to Cholamandalam Investment & Finance while consolidating his position in Tube Investments of India and CG Power and Industrial Solutions.

Impact on Share Prices

At 10:45 am on February 26, Cholamandalam Investment & Finance Company Ltd shares were trading 3% lower at Rs 1,703.4 apiece. In contrast, shares of Tube Investments were trading 2.5% higher at Rs 2,689.2 apiece, while those of CG Power were trading 2% higher at Rs 727.6 apiece.

Company Overview

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Cholamandalam Investment & Finance Company Ltd is a non-banking financial company with a market capitalisation exceeding ₹1 lakh crore. The company has reported over $9 billion in revenue in FY23.

Vellayan Subbiah's Background

Vellayan Subbiah holds a Bachelor of Technology in Civil Engineering from IIT Madras and an MBA from the University of Michigan. With over 28 years of experience in various fields, he has served in senior positions across different industries. He is the non-executive chairman of CG Power and Industrial Solutions Limited and non-executive vice-chairman of Tube Investments of India Limited.