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Awaiting price reaction for this filing.
Kallam Textiles has received sale notices from Union Bank of India for two of its key operating units — the Spinning Unit in Guntur (Andhra Pradesh) and the Hydel Power Unit in Khammam (Telangana). The bank will auction these assets on 28 January 2026 via e-auction on baanknet.com to recover outstanding dues of about Rs. 208.78 crore as of 31 December 2025. The combined reserve price for all four properties (land, buildings, plant and machinery) is roughly Rs. 137 crore — Rs. 62.85 crore for the Spinning Unit's land and building, Rs. 64.63 crore for its plant and machinery, Rs. 5.09 crore for the Hydel Unit's land and building, and Rs. 4.52 crore for its plant and machinery. This follows a demand notice under Section 13(2) of the SARFAESI Act issued on 10 September 2024 and the bank taking constructive possession of the assets on 10 December 2024 (Spinning) and 12 September 2025 (Hydel). The company's promoters and directors are also named as co-borrowers and guarantors, and a case (SA No.51/2025) is pending at DRT Visakhapatnam.
This is a severe distress event — the company is losing its core spinning and hydel assets to recover less than the total outstanding debt, raising serious going-concern questions. Shareholders should brace for significant stock price volatility and the risk of the company being reduced to a shell, with potential for sharp value erosion depending on auction outcomes.