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.

Astron Paper & Board Mill Ltd , a paper manufacturing company, has received a possession notice from a consortium of banks for multiple properties, signaling potential financial distress for the firm.

Possession Notice Details

The company disclosed that it received a possession notice dated September 23, 2025, from Union Bank of India and member banks including Axis Bank, ICICI Bank, Bank of Maharashtra, and State Bank of Mauritius. The notice was issued under the Securitisation and Reconstruction of Financial Assets and Enforcement Security Interest Act, 2002.

Properties Affected

The possession notice covers six properties totaling approximately 160,015 square meters in Village Sukhpar, Taluka Halvad, District Surendranagar. The affected properties include:

1. A plot of land at Survey No. 55, admeasuring 11,028 sq. meters
2. A plot of land at Survey No. 54, admeasuring 12,950 sq. meters
3. Land and building at Survey No. 52/1, 52/2, 53/1, 53/paiki 2, admeasuring 45,224 sq. meters
4. N.A. land at Survey No. 49 paiki 1 and Survey No. 50, admeasuring 30,049 sq. meters
5. Factory land at Survey No. 49 paiki 2, admeasuring 14,670 sq. meters
6. Factory land at Survey No. 51/1, 51/2, & 51/3, admeasuring 46,094 sq. meters

Company's Response

In its official communication to the stock exchanges, Astron Paper & Board Mill stated that it is evaluating the implications of this action. The company has indicated that it will take appropriate steps based on legal advice.

Regulatory Compliance

The disclosure of this possession notice was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This regulation requires listed entities to inform the stock exchanges about material events that may affect their operations.

Implications for Stakeholders

This development raises concerns about Astron Paper & Board Mill's financial health and its ability to meet its debt obligations. Shareholders and other stakeholders will likely be watching closely for further updates on the company's plans to address this situation and its potential impact on operations.