Kallam Textiles Receives Sale Notices from Union Bank for E-Auction of Assets
Kallam Textiles Limited has received notices of sale from Union Bank of India under SARFAESI Act 2002 for public e-auction of its secured assets including industrial land and plant & machinery. The bank is seeking to recover ₹208.78 crores and has scheduled the auction for March 30, 2026, with combined reserve price exceeding ₹103 crores for both properties.
*this image is generated using AI for illustrative purposes only.
Kallam Textiles Limited has disclosed receiving notices of sale from Union Bank of India under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002. The company informed BSE Limited on 11-03-2026 about receiving these notices dated 06-03-2026 regarding the sale of its spinning unit assets.
Sale Notice Under SARFAESI Act
The notices were issued under Rule 8 and 9 of the Security Interest (Enforcement Rules) 2002. Union Bank of India's Asset Recovery Branch, Vijayawada, has scheduled a public e-auction of the company's secured assets following the bank's enforcement actions.
| Notice Details: | Information |
|---|---|
| Notice Date: | 06-03-2026 |
| Issuing Authority: | Union Bank of India Asset Recovery Branch, Vijayawada |
| Legal Framework: | SARFAESI Act 2002, Rules 8 & 9 |
| Auction Date: | 30-03-2026 |
| Auction Platform: | www.baanknet.com |
Outstanding Debt and Recovery Actions
According to the sale notice, the bank is seeking to recover ₹208,78,49,316.12 as on 31-12-2025, plus interest and expenses. The bank had previously issued a demand notice dated 11-09-2024 under Section 13(2) of the SARFAESI Act. Following non-compliance, the authorized officer took constructive possession of the immovable secured assets on 10-12-2024.
Properties to be Auctioned
The e-auction will cover two main categories of assets:
| Property Details: | Specifications |
|---|---|
| Property 1: | Industrial land (17.13 acres) with buildings at Chowdavaram Village, Guntur |
| Reserve Price 1: | ₹51,00,00,000.00 |
| EMD Required 1: | ₹5,10,00,000.00 |
| Property 2: | Plant & Machinery of Ginning and Spinning Division |
| Reserve Price 2: | ₹52,50,00,000.00 |
| EMD Required 2: | ₹5,25,00,000.00 |
Auction Terms and Conditions
The e-auction is scheduled for 30-03-2026 from 12:00 PM to 05:00 PM with unlimited 10-minute auto extensions. Both properties must be purchased by the same bidder simultaneously. The successful bidder must deposit 25% of the sale price immediately, with the balance 75% payable within 15 days of sale confirmation.
Borrower and Guarantor Details
The proceedings involve multiple parties as borrowers and guarantors:
| Parties Involved: | Details |
|---|---|
| Primary Borrower: | Kallam Textiles Limited |
| Managing Director: | Sri. Poluri Venkateswara Reddy (also guarantor) |
| Joint Managing Director: | Sri. Gurram Venkata Krishna Reddy (also guarantor) |
| Company Location: | NH-5, Chowdavaram, Guntur District, Andhra Pradesh |
Regulatory Compliance
Kallam Textiles made this disclosure under Regulation 30 of SEBI Listing Regulations and the company's policy on determination of materiality for disclosure of events. The company has assured continued updates to the exchange regarding any further developments in this matter.
The sale notice indicates that there is pending litigation SA No. 51/2025 dated 20-01-2025 filed by the company at DRT, Visakhapatnam. The properties will be sold on "as is where is" and "whatever there is" basis, free from encumbrances known to the secured creditor.
Source: None/Company/INE629F01025/d1293892-c288-4b0a-b802-40984169d208.pdf
Historical Stock Returns for Kallam Textiles
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.78% | -5.41% | -15.66% | -29.65% | -31.71% | -68.25% |
17
