R R Kabel Enters Optical Fibre Cable Segment

has approved the acquisition of the business undertaking of U M Cables Limited (UMCL), a wholly owned subsidiary of Usha Martin Limited. The acquisition will be completed through a slump sale on a going-concern basis for a cash consideration of ₹77 crore. The company had earlier announced the execution of a Business Transfer Agreement for the transaction on September 25, 2026. The acquisition marks R R Kabel’s entry into the optical fibre cable segment, expanding its presence beyond its existing cable and electrical product portfolio. The transaction involves acquiring the business undertaking of UMCL rather than purchasing equity shares of the company. The ₹77 crore cash consideration represents the stated acquisition cost, while the latest update confirms that the transaction has received approval from R R Kabel’s Board. The business transfer is structured as a slump sale, meaning the identified undertaking is being transferred as a going concern. For R R Kabel, the transaction provides an opportunity to establish a presence in the optical fibre cable industry through an existing business. Investors may track the completion of the acquisition, integration of the acquired operations, product capacity and the contribution of the new segment to future financial performance. The company’s September 25 filing had confirmed that R R Kabel, U M Cables and Usha Martin had executed the Business Transfer Agreement for the acquisition. The relevant regulatory disclosures had already been submitted to the stock exchanges on September 24. Disclosure: I do not hold any position or financial interest in the mentioned stock.