Astron Paper & Board Mill Limited , a paper manufacturing company, has recently received a possession notice from Union Bank of India for multiple properties across Gujarat. This development comes as part of the bank's actions under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

Details of the Possession Notice

The possession notice, dated October 17, 2025, outlines the bank's intention to take control of nine properties owned by Astron Paper & Board Mill. These properties include factory lands, office spaces, and plots, totaling approximately 178,000 square meters. The affected assets are spread across various locations in Gujarat, including:

Company's Response

In response to this notice, Astron Paper & Board Mill has stated that it is currently evaluating the implications of this action. The company has indicated its intention to take appropriate legal steps based on the advice it receives.

Regulatory Compliance

The company has made this disclosure in compliance with Regulation 30 of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015. This regulation mandates listed entities to inform stock exchanges about material events that may affect their operations.

Impact on Stakeholders

While the full impact of this development remains to be seen, it could potentially affect the company's operations and financial position. Stakeholders, including investors and employees, will likely be watching closely for further updates from the company regarding its response to this situation and any potential impact on its business activities.

As the situation unfolds, more information may become available about the circumstances leading to this action by Union Bank of India and the company's strategy to address these challenges. Stakeholders are advised to stay informed about any further announcements from Astron Paper & Board Mill Limited or relevant regulatory bodies.

Astron Paper & Board Mill Limited has disclosed that Canara Bank's Asset Recovery Management Branch has issued an e-auction sale notice dated November 21, 2025, for assets belonging to its wholly-owned subsidiary, Balaram Papers Private Limited, under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002.

E-Auction Notice Details

The bank has initiated the e-auction process under the provisions of the SARFAESI Act, 2002 read with the Security Interest (Enforcement) Rules, 2002. The notice targets specific assets of the subsidiary company for recovery purposes.

Assets Subject to Auction

The properties scheduled for e-auction include:

The industrial property encompasses approximately 10,217 square meters of land designated for industrial purposes, along with the plant and machinery installed on the premises.

Company's Response and Legal Compliance

Astron Paper & Board Mill Limited has stated that it is currently evaluating the implications of this e-auction notice. The company plans to take appropriate steps based on legal advice received regarding the matter.

The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has duly informed both the National Stock Exchange of India Ltd and BSE Limited about this development to keep stakeholders informed.

Market Implications

This e-auction notice under the SARFAESI Act indicates potential loan default issues at the subsidiary level. The Act empowers banks and financial institutions to auction properties for loan recovery in cases of default. Investors should monitor further developments as this situation could impact the company's financial position and subsidiary operations.