Aksh Optifibre Receives SARFAESI Notice from HDFC Bank over Rs 36.63 Crore Dues

Aksh Optifibre Limited, a well-known manufacturer in the optical fibre and telecom industry, has officially disclosed to the National Stock Exchange (NSE) and BSE Limited that it received a notice under Section 13(2) of the SARFAESI Act, 2002 from HDFC Bank Ltd. on July 4, 2025.

The notice alleges an outstanding amount of approximately Rs 3,663.39 Lakhs (Rs 36.63 Crore), indicating serious financial obligations and potential legal action under India's stringent asset recovery law.

The company made this disclosure as per Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency for all its stakeholders.

Background of the Loan and OTS Agreement

Previously, HDFC Bank Ltd. had issued a letter dated October 16, 2024, in which it formally accepted Aksh Optifibre’s One-Time Settlement (OTS) proposal.

Under the terms of this OTS agreement, the total agreed settlement amount was Rs 2,559.78 Lakhs (Rs 25.59 Crore), which the company was required to pay in full and final settlement of all outstanding dues by January 7, 2025.

This OTS agreement was meant to resolve the accumulated debt in a structured, negotiated manner, allowing Aksh Optifibre to avoid more aggressive recovery measures like the invocation of SARFAESI proceedings.

Partial Payment and Request for Extension

Despite the agreement, Aksh Optifibre has only made partial payments towards the OTS amount by the stipulated deadline.

The company has acknowledged that it requested an extension from HDFC Bank to complete the payment under the OTS terms, demonstrating that it did not abandon the settlement but faced genuine financial constraints.

This delay in meeting the full obligation, however, appears to have prompted HDFC Bank to issue the SARFAESI notice in July 2025.

Understanding the SARFAESI Act Notice

The SARFAESI Act, 2002 (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act) is a powerful legal mechanism that allows banks to enforce security interests without court intervention.

Section 13(2) of the Act requires the borrower to discharge its liability within 60 days from the date of notice, failing which the bank can take measures such as:

• Taking possession of secured assets.

• Taking over management of the borrower’s business.

• Appointing a manager to manage secured assets.

• Selling or leasing secured assets to recover dues.

By serving this notice, HDFC Bank has signalled a serious escalation of recovery proceedings.

Company’s Response and Next Steps

In its regulatory filing, Aksh Optifibre stated:

The Company is seeking suitable legal advice and will take all necessary steps to safeguard the interests of its stakeholders.

This indicates that the company is treating the matter with utmost seriousness. It is expected to:

• Review legal options to contest or negotiate the notice.

• Potentially renegotiate repayment terms with the bank.

• Protect its assets, operations, and shareholder value.

Aksh Optifibre also reassured the stock exchanges that it will continue to update them about any further developments in this matter.

Financial Stress and Industry Context

Aksh Optifibre Limited is a listed company on both the NSE (symbol: AKSHOPTFBR) and the BSE (Scrip Code: 532351).

The company operates in the optical fibre, telecom, and cable sector, which has seen both rapid growth and intense competition in India.

Financial stress in the industry is not uncommon, driven by:

• High capital expenditure needs.

• Price competition.

• Payment cycles with large government or telecom customers.

• Global supply chain disruptions.

In such a scenario, companies often turn to One-Time Settlement agreements with lenders to restructure debt and restore financial stability.

Implications of the Notice

A SARFAESI notice is a serious legal development. If Aksh Optifibre fails to resolve this matter within the statutory period, HDFC Bank can:

• Take possession of pledged assets (e.g., land, buildings, plant and machinery).

• Initiate auction proceedings to recover dues.

• Seek to change management control if it sees fit.

Such actions can have material impact on operations, supply chains, employee morale, and investor confidence.

Regulatory Compliance and Transparency

By filing this disclosure with the stock exchanges, Aksh Optifibre is complying with SEBI’s Regulation 30, which mandates prompt disclosure of material events.

This level of transparency:

• Keeps investors informed.

• Allows fair price discovery in the market.

• Demonstrates good corporate governance even in adverse situations.

Company Secretary's Statement

The formal disclosure was signed by Mayank Chadha, Company Secretary & Compliance Officer (ICSI M. No.: F13404), underscoring the company’s official stance.

In the letter, Mayank Chadha assured all stakeholders that the company:

Will take all necessary steps to safeguard the interests of its stakeholders.

Stakeholder Perspective

For investors, the key takeaway is that Aksh Optifibre is currently under financial stress and negotiating a serious repayment dispute with HDFC Bank.

However, the company's proactive communication and intent to seek legal advice suggest it is not ignoring the problem.

Investors will closely watch:

• Whether the company can secure an extension or restructure the repayment plan.

• Whether HDFC Bank proceeds with asset seizure or other recovery measures.

• How this will impact future earnings, asset valuations, and overall solvency.

The Road Ahead

Aksh Optifibre faces the challenge of resolving its liabilities while maintaining operational stability.

Key next steps for the company include:

• Negotiating with HDFC Bank to find a mutually agreeable solution.

• Managing working capital and cash flows to support repayment.

• Strengthening internal financial discipline to avoid future defaults.

• Ensuring clear, continuous communication with shareholders and regulators.

Conclusion

The receipt of a SARFAESI Act notice marks a critical moment for Aksh Optifibre Limited.

While the company faces serious financial pressure, its formal disclosure, plan to seek legal advice, and promise of ongoing updates reflect responsible corporate behaviour.

Investors, lenders, and industry watchers will be watching closely to see how Aksh Optifibre manages this challenge and whether it can emerge with its business intact and stakeholder value preserved.

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