Stocks of key Murugappa Group companies are moving in different directions on Thursday, February 26, following a report suggesting a potential ownership restructuring among the group’s promoters.
Shares of Cholamandalam Investment and Finance Ltd. declined sharply in early trade, falling as much as 6%, while Tube Investments of India Ltd. and CG Power Ltd. traded in positive territory with gains ranging between 2% and 2.5%.
Report Points to Promoter-Level Ownership Alignment
According to a media report, Vellayan Subbiah has reached an agreement with other key promoters to align the ownership structure across the group’s major listed companies.The reported arrangement would allow Subbiah to relinquish his stake in Cholamandalam Investment and Finance, while consolidating his holdings in Tube Investments of India and CG Power.
The report has not been independently verified.
An earlier report dated August 19, 2024, had highlighted that the turnaround initiatives led by Subbiah, particularly at CG Power, had emerged as a key issue in discussions among family members regarding potential share swaps.
Stock Price Movement on February 26
Cholamandalam Investment and Finance shares attempted to recover from intraday lows and were trading 2% lower at ₹1,717.5.Tube Investments of India shares were trading 1.7% higher at ₹2,662.9.
CG Power shares were trading 2.4% higher at ₹730.25.
The divergent stock performance reflects investor reaction to the reported promoter-level developments within the Murugappa Group.
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