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Awaiting price reaction for this filing.
Kallam Textiles Ltd has disclosed receiving notices dated 09-02-2026 from Union Bank of India for the sale of its Spinning Unit (Guntur, Andhra Pradesh) and Hydel Unit (Khammam, Telangana) under the SARFAESI Act, 2002. The bank had earlier issued a demand notice on 11-09-2024 under Section 13(2) and taken constructive possession of the assets in Dec 2024/Sep 2025 after the company failed to clear its dues. Total outstanding is Rs. 208.78 crore as on 31-12-2025. An e-auction is scheduled for 27-02-2026 with a combined reserve price of around Rs. 123.38 crore (Spinning Unit land/building Rs. 56.56 crore + plant & machinery Rs. 58.17 crore; Hydel Unit land/building Rs. 4.58 crore + plant & machinery Rs. 4.07 crore). A company-filed stay application (SA No. 51/2025) is pending at DRT Visakhapatnam. The personal guarantees of Managing Director Poluri Venkateswara Reddy and Joint MD Gurram Venkata Krishna Reddy have also been invoked.
This is a deeply negative development for shareholders — the company's two main operating assets (spinning and hydel power) are being put on the block by the secured lender, signaling severe financial distress and possible loss of control over core operations. With dues of ~Rs. 209 crore against asset reserve prices of ~Rs. 123 crore, there is a significant recovery shortfall, raising concerns about equity value erosion, promoter personal liability, and the risk of the company becoming a non-going concern.