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Cholamandalam Investment Shares Surge 6% After Company Calls CobraPost Report "Malicious and Baseless"

  //stocks-investing.news-articles.net/content/202 .. lls-cobrapost-report-malicious-and-baseless.html
  Published in Stocks and Investing on Tuesday, December 23rd 2025 at 0:19 GMT by moneycontrol.com
      Locale: Tamil Nadu, INDIA

Cholamandalam Investment Shares Surge 6% After Company Calls CobraPost Report “Malicious and Baseless”

The stock of Cholamandalam Investment & Finance Company Ltd. (CIFL) saw a sharp 6 % rally on the trading day after the firm issued a stern statement denouncing a recent online report by the media house CobraPost. The commentary from the company, which highlighted the allegations as “malicious” and “baseless,” appears to have reassured investors, who had been uneasy about the rumours that surfaced a few days earlier.

1. Who is Cholamandalam Investment?

Cholamandalam Investment & Finance Company, part of the larger Cholamandalam group that also owns the Indian Bank, is a consumer‑finance company listed on the National Stock Exchange (NSE) under the ticker “CIM.” The firm lends primarily to retail customers in India, with a portfolio that includes home loans, vehicle financing and personal credit. Historically, the company has reported modest growth in its net income and has been regarded as a relatively stable player in the Indian banking sector.

The company’s website (link in the article) provides details of its recent financial performance, a list of its key executive officers, and press releases concerning regulatory approvals and major business initiatives. In the months leading up to the incident, CIFL’s shares had experienced a moderate decline, mainly due to market speculation about a potential regulatory review of the group’s consumer‑finance arm.

2. What did CobraPost say?

The online media outlet CobraPost (link in the article) had released a report suggesting that Cholamandalam Investment was engaged in “unusual” accounting practices that could potentially inflate its loan‑to‑asset ratio. The piece also hinted at an “ongoing investigation” by the Reserve Bank of India (RBI) into the company’s loan disbursement procedures. The allegations, according to CobraPost, were drawn from a leaked internal memo that the outlet claimed had been obtained from a “trusted source.”

CobraPost’s article was heavily circulated on social media, generating a wave of negative sentiment among investors. Several analysts raised concerns that the claims, if proven true, could lead to a downgrade of the company’s credit rating and a decline in its market value.

3. The company’s rebuttal

In a statement released at 10:15 AM IST, the CFO of Cholamandalam Investment called the CobraPost allegations “malicious” and “baseless.” The firm asserted that it had never been subjected to any RBI inquiry about loan disbursement and that its internal audit reports were “transparent and compliant with all regulatory norms.” The statement also added that the company was “taking legal action” against CobraPost for defamation.

A spokesperson for the company highlighted that it had never released any confidential documents to the media, and that the “leaked memo” cited by CobraPost was, in fact, an internal draft that had never reached public circulation. The statement concluded with a note of confidence, suggesting that the market’s reaction was an “overreaction” to unfounded claims.

4. Market reaction and investor sentiment

After the company’s rebuttal, Cholamandalam Investment shares jumped 6 % from an opening price of ₹104 to a closing price of ₹111. This rally came in spite of a broader market trend that had seen the NSE’s Nifty 50 index slip marginally earlier in the day. Analysts cited the company’s robust earnings record, the absence of a formal RBI investigation, and the “clarity” offered by the CFO’s statement as key factors behind the stock’s rebound.

An investment commentator from Moneycontrol noted that “the market tends to react quickly to any rumours of regulatory scrutiny, but once the company clarifies that it has no such issues, investor confidence is restored.” The article also referenced a recent 12‑month performance review that highlighted CIFL’s consistent profit growth and strong asset quality metrics.

5. Wider context and historical precedents

Cholamandalam Investment is not new to scrutiny. In 2019, the company faced a regulatory probe over alleged high‑risk loan practices. The investigation, however, was eventually dropped after the company submitted detailed disclosures and improved its risk‑management framework. A link in the Moneycontrol article directs readers to a 2019 Reuters piece that covers that episode in detail.

The current incident mirrors a broader trend in India where media outlets occasionally publish sensational claims that can dramatically influence a firm’s share price. While regulatory bodies such as the Securities and Exchange Board of India (SEBI) and the RBI have strict guidelines for disclosure, many companies find it necessary to issue swift statements to counter potential defamation.

6. Legal implications

Cholamandalam Investment has reportedly filed a defamation suit against CobraPost, seeking compensation for damages to its reputation and a formal retraction. The legal complaint (linked in the article) specifies that the company alleges the media house published “false and damaging” content without verifying the facts. If the case proceeds, it could set a precedent for how financial institutions handle defamation in the age of instant online publishing.

7. Take‑away for investors

While the 6 % rise in shares suggests that the market is currently confident in the company’s response, investors should remain vigilant. The episode underscores the importance of monitoring regulatory announcements and company statements closely. It also highlights the potential for market volatility triggered by unverified online claims, especially in the consumer‑finance sector where regulatory scrutiny is frequent.

Bottom line

Cholamandalam Investment’s 6 % share surge after dismissing CobraPost’s allegations demonstrates how a firm’s decisive response can stabilize investor sentiment amid unfounded rumours. As the company moves forward, all eyes will be on the outcome of its defamation suit and whether any regulatory bodies will eventually examine the claims raised by CobraPost. For now, the market appears to view the company’s rebuttal as credible, buoying the stock’s performance and providing a brief respite from the sector’s recent volatility.