Letter Attached
Awaiting price reaction for this filing.
Oswal Overseas Ltd has informed the stock exchange that the Cane Commissioner of Uttar Pradesh has initiated auction proceedings against the company for non-payment of sugarcane farmers' dues of Rs. 70.34 Crore. The auction, to be conducted through the Sub-Divisional Magistrate of Nawabganj (Bareilly), is scheduled for September 25, 2025, and covers 8,900 quintals of sugar stock with an estimated value of Rs. 3.55 Crore. The company received the auction notice on September 8, 2025. The company has stated it is evaluating the financial and operational impact and will update the exchange of further developments. The auction value covers only a tiny fraction of the total outstanding dues, pointing to a significant liquidity crisis.
Negative for shareholders — this signals acute financial distress as the company cannot pay sugarcane farmers, and the auction recovery will barely dent the Rs. 70.34 Crore outstanding, raising the risk of further enforcement actions and impact on ongoing operations.