Astron Paper & Board Mill Limited (APBML) has disclosed that its wholly-owned subsidiary, Balaram Papers Private Limited, has received a possession notice from Canara Bank under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002.

Key Details of the Possession Notice

The notice pertains to the following assets:

The industrial property is situated behind Honest Hotel, near the highway on Dhanali Road, Mouje - Ganeshpura, Tehsil -Kadi, District Mehsana, Gujarat.

Company's Response

APBML has stated that it is currently evaluating the implications of this action. The company plans to take appropriate steps based on legal advice. This disclosure was made in compliance with the Securities and Exchange Board of India (SEBI) regulations to keep stakeholders informed.

Regulatory Compliance

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

Implications

This possession notice under the SARFAESI Act suggests that Balaram Papers Private Limited may have defaulted on loan repayments to Canara Bank. The Act allows banks and other financial institutions to auction residential or commercial properties to recover loans in case of default.

Investors and stakeholders of Astron Paper & Board Mill Limited should closely monitor further developments, as this situation could potentially impact the company's financial position and operations. The full extent of the impact will depend on the company's response and the outcome of any legal or financial measures it may undertake.

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.