According to a newsbreak by Moneycontrol, Vellayan Subbiah has reached a settlement with other promoter branches to align the ownership structure across key group companies, as per people familiar with the matter.
The report states that the agreement will see him give up his exposure linked to Cholamandalam Investment and Finance, while consolidating his position in both Tube Investments of India and CG Power.
In a filing to the exchanges, Cholamandalam Investment and Finance said that the speculation in the story by Moneycontrol is “factually incorrect and entirely baseless.””We would like to categorically state that Mr. Vallayan 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 company stated.
The filing also went on to add that there is no change in the management control structure or ownership of the group’s business and that the current management structure, in place for the past several years, remains unchanged.
A report from the Economic Times dated August 19, 2024 had stated that the turnaround of businesses overseen by Subbiah, particularly CG Power, had become a key sticking point in share-swap discussions among family members.
Shares of Cholamandalam Investment and Finance are looking to recover from the lows of the day, currently trading 2% lower at ₹1,717.5, while those of Tube Investments are trading 1.7% higher at ₹2,662.9. Shares of CG Power are trading 2.4% higher at ₹730.25.
