Kallam Textiles Limited , a player in the textile industry, is facing a financial challenge as Union Bank of India has issued notices for public e-auction of its assets. This development comes as an escalation of the previously reported notice under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002.

Key Details of the E-Auction Notice

• Issuing Bank: Union Bank of India
• Auction Date: December 30, 2025
• Outstanding Dues: Rs. 185.35 crore
• Assets for Auction: Spinning unit and hydel unit assets
• Total Reserve Price: Over Rs. 147.00 crore
• Assets Include: Industrial land, machinery, and hydro power project assets

This e-auction notice indicates that Kallam Textiles has been unable to comply with earlier demand notices, leading to this action by the bank.

Implications

The issuance of e-auction notices suggests that Kallam Textiles is facing financial challenges:

1. Asset Loss: If the auction proceeds, the company may lose operational assets, including its spinning unit and hydel unit.
2. Financial Impact: The potential sale of assets worth over Rs. 147.00 crore could affect the company's operational capacity.
3. Debt Recovery: Union Bank of India is taking steps to recover its outstanding dues of Rs. 185.35 crore.

Conclusion

This situation represents a critical juncture for Kallam Textiles Limited. The outcome of this e-auction, if it proceeds, could have consequences for the company's operations and financial position. Investors and stakeholders may want to monitor further announcements from both Kallam Textiles and Union Bank of India regarding this matter.

Kallam Textiles Limited, a prominent player in the textile industry, has recently encountered a significant development concerning its Hydel unit in Telangana. The company has disclosed crucial information that may impact its operations and stakeholders.

Possession Notice Served

Kallam Textiles Limited received a possession notice from Union Bank of India for its Hydel unit. The unit in question is located in Nelakondapalli, Khammam, Telangana. This notice was served under Section 13 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, read in conjunction with Rule 8 of the said rules.

Company's Response

In compliance with regulatory requirements, Kallam Textiles has promptly informed the stock exchange about this development. The company, in its communication, stated that it would provide updates on any further developments related to this matter. This proactive approach aligns with the transparency expected of listed entities.

Regulatory Compliance

The intimation was made pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Additionally, it adheres to SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023, and the company's internal Policy on Determination of Materiality for Disclosure of Events or Information.

Details of the Notice

According to the LODR data, the possession notice was specifically served at the Hydel unit located in Nelakondapalli, Khammam, Telangana-507160. The company has also mentioned that a detailed copy of the notice served by Union Bank of India has been attached for reference.

Management Statement

Golagani Ramesh Kumar, the Company Secretary & Compliance Officer of Kallam Textiles Limited, signed the official intimation to the stock exchange. The company has committed to keeping the Exchange informed about any further developments regarding this matter.

Implications and Outlook

While the full implications of this possession notice are yet to be determined, it represents a significant event for Kallam Textiles Limited. Stakeholders and investors will likely be watching closely for any updates or resolutions regarding the Hydel unit's status and its potential impact on the company's operations.

As the situation unfolds, Kallam Textiles Limited's management appears to be maintaining a stance of transparency and regulatory compliance, which is crucial in navigating such challenges in the corporate landscape.