Kallam Textiles Limited has disclosed that Union Bank of India has filed an insolvency petition against the company at the National Company Law Tribunal (NCLT) Amaravati Bench. The textile manufacturer informed BSE about this significant development through a regulatory filing dated February 12, 2026.

NCLT Petition Details

The company received official communication from NCLT Amaravati Bench on February 11, 2026, regarding the petition filed by Union Bank of India. Key details of the legal proceeding are presented below:

Regulatory Compliance

Kallam Textiles made the disclosure pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company cited compliance with Schedule III of the SEBI Listing Regulations and referenced SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023.

The disclosure was made in accordance with the company's Policy on Determination of Materiality for Disclosure of Events or Information. Company Secretary and Compliance Officer Golagani Ramesh Kumar signed the regulatory filing.

Company Commitment

Kallam Textiles has committed to keeping the stock exchange updated on any further developments in this legal matter. The company stated it will continue to provide updates to the exchange as the NCLT proceedings progress.

The textile company, formerly known as Kallam Spinning Mills Limited, is incorporated under CIN L18100AP1992PLC013860 and is based in Chowdavaram, Guntur, Andhra Pradesh. The company trades on BSE under scrip code 530201.

Kallam textiles Limited has received a credit rating reaffirmation from CARE Ratings Limited, with the rating agency maintaining its existing assessments for the company's bank facilities. The rating action, dated February 06, 2026, follows a comprehensive review of the company's operational and financial performance for FY25 (Audited) and H1FY26 (Un-audited).

Rating Details and Facility Coverage

CARE Ratings has reaffirmed the following ratings for Kallam Textiles:

The total facilities under review amount to ₹345.38 crore, covering various banking arrangements across multiple financial institutions.

Facility Breakdown and Banking Partners

The Long Term facilities worth ₹154.14 crore primarily consist of term loans and Government Emergency Credit Line (GECL) facilities from Indian Bank and Union Bank of India. The largest individual facility is a term loan from Indian Bank with a rated amount of ₹25.04 crore under GECL, sanctioned for ₹30.36 crore.

Long Term/Short Term Facilities Structure

The ₹191.24 crore Long Term/Short Term facilities comprise:

Fund Based Limits (₹189.75 crore):

• Union Bank of India: ₹84.75 crore (CC/PC/PCFC)
• Indian Bank: ₹60.00 crore (Cash Credit Limit with ₹2.00 crore BG sublimit)
• Bill Discounting facilities: ₹40.00 crore (₹20.00 crore each from Union Bank and Indian Bank)
• Bank of Baroda: ₹5.00 crore (Cash Credit Limit)

Non-Fund Based Limits (₹1.49 crore):

• Union Bank of India: ₹1.00 crore (Bank Guarantee)
• Indian Bank: ₹0.49 crore (Forward cover)

Regulatory Compliance and Disclosure

Kallam Textiles has informed the Bombay Stock Exchange about the rating reaffirmation in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company's communication, signed by Company Secretary & Compliance Officer Golagani Ramesh Kumar, was dated February 07, 2026.

Rating Implications and Monitoring

The CARE D rating indicates that the instruments are in default or are expected to be in default soon. CARE Ratings reserves the right to undertake surveillance and review of the rating from time to time, with at least one review annually. The rating agency has also indicated that it may revise, reaffirm, or withdraw the rating based on periodic reviews and surveillance activities.

The rating assessment was conducted by Lead Analyst Chethan C S and Assistant Director Niraj Thorat from CARE Ratings' Hyderabad office. The rating agency has emphasized that these ratings are not recommendations to sanction, renew, disburse, or recall the concerned bank facilities.

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