Cholamandalam Investment and Finance Company Limited has issued a detailed clarification under Regulation 30 of SEBI Listing Regulations, categorically denying all allegations made against the company and its associates. The financial services firm has described the charges as malicious and baseless, stating they are driven by ulterior motives.

Strong Financial Position Reaffirmed

The company has reassured investors about its robust financial health and performance metrics. Key financial indicators demonstrate the company's strong position in the market.

The company maintains strong credit ratings of AA from ICRA, India Ratings and CARE. The Asset Liability Management (ALM) across time buckets remains positive, indicating healthy liquidity management.

Response to Specific Allegations

Cholamandalam Investment has provided detailed clarifications on various allegations raised in blogs and posts by certain agencies. The company has addressed concerns about its financial practices, related party transactions, and compliance matters.

Cash Collection Practices

The company explained its large cash deposits stem from serving over 50 lakh customers across 1,700 branches, primarily small road transport operators and self-employed non-professionals in rural and semi-urban areas. These borrowers typically earn and pay in cash, including EMIs, which are then deposited in banks following proper KYC and income tax compliance.

Related Party Transactions

All related party transactions are disclosed in full compliance with legal and accounting requirements in the financial statements. The company cited examples including insurance premium collections for borrower policies paid to subsidiary Cholamandalam MS General Insurance Company Limited, and payments for manpower, strategic services, and IT requirements to related entities.

Capital Structure Enhancement

The company's net worth increase includes the conversion of ₹300 crores of Compulsorily Convertible Debentures (CCDs) issued in FY24. An additional ₹1,700 crores of CCDs is expected to be converted in the next three quarters, further strengthening the company's capital base.

Cholamandalam Investment has committed to transparent communication with investors and stakeholders while reserving the right to take action against agencies causing damage to its reputation and integrity. The company maintains that all operations are conducted in compliance with applicable laws and regulatory guidelines.

Cholamandalam Investment and Finance Company Limited has announced the allotment of 98,980 equity shares to employees under its Employee Stock Option Scheme (ESOP). The company informed stock exchanges about this development following the approval from its committee.

Share Allotment Details

The Nomination and Remuneration Committee of the company approved the allotment of equity shares to employees who exercised their stock options. The allotment specifics are outlined below:

Listing and Compliance Process

The company is expected to proceed with applying for the final listing of the allotted shares on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). This step is part of completing the remaining formalities associated with the share allotment process.

Such notifications are typically filed under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, ensuring compliance with mandatory disclosure requirements for listed companies.

Company Information

Cholamandalam Investment and Finance Company Limited is headquartered at Chola Crest, Guindy, Chennai, and is part of the Murugappa Group.