Cholamandalam Shares Surge Amid Cobrapost Allegations; Analysts Dismiss Claims

Cholamandalam Investment & Finance shares experienced a significant rise despite serious allegations by Cobrapost regarding undisclosed related-party transactions and large cash deposits. The company has vehemently denied the claims, while market analysts largely view the allegations as not impacting the investment thesis.

• Cobrapost alleged over ₹10,000 crore in undisclosed RPTs and ₹25,000 crore in cash deposits.
• Cholamandalam strongly refuted the allegations, labeling them 'malicious and baseless'.
• Company clarified cash transactions stem from its business model with small transport operators.
• Investors and analysts largely shrugged off the allegations, causing shares to rise by 7-8%.
• Market sentiment remains strong, driven by fundamentals and the Murugappa Group's reputation.
• Multiple credible sources corroborated the allegations, company's denial, and market reaction.

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