R R Kabel board approves proposal to acquire U M Cables’ optical fibre cable business; shares rally 72% YTD

The proposed acquisition of the business undertaking of UMCL will be undertaken on a slump sale and on a concern basis for a lump-sum cash consideration of ₹77 crore, according to a regulatory filing dated September 25.

The acquisition marks RR Kabel’s entry into the OFC segment, it stated, adding that it is an important step in expanding its presence in the broader communication cables market.

“It will complement RR Kabel’s existing cable portfolio and broaden its range of solutions across communication infrastructure applications,” the firm said.

Furthermore, the company added, the acquisition provides an established platform for its entry into OFC, including ready manufacturing assets, existing approvals and an operating track record.

“This allows the Company to enter the segment with established capabilities rather than building the platform organically and is expected to accelerate its expansion into communication cables,” it added.

UMCL is a wholly owned subsidiary of Usha Martin Ltd and is engaged in the manufacturing and sale of optical fibre and related cables.

Commenting on the development, Rajesh Kabra, Joint Managing Director, R R Kabel, said that the acquisition is a strategic step in expanding RR Kabel’s presence into the communication infrastructure space and marks our entry into the Optical Fibre Cable segment.

Importantly, Kabar added that the firm is acquiring an established operating platform with ready manufacturing assets, existing approvals and a demonstrated track record.

“This gives us a strong foundation in OFC while significantly shortening the time required to build these capabilities organically,” he stated, adding, “We believe RR Kabel’s scale, manufacturing capabilities, market reach and customer relationships can help unlock the next phase of growth for this business, while strengthening our overall cables portfolio.”

R R Kabel stock performance

Shares of R R Kabel closed 0.06% lower at ₹2,528.30 per unit on the National Stock Exchange (NSE) on Friday, September 25. However, the acquisition approval was announced after the market closed.

The scrip has risen 3% in the past week but declined 10% over the month. On a year-to-date (YTD) basis, it has soared 72%.

While the stock hit a 52-week high of ₹2,983.80 per equity share on August 24, 2026, they touched a year’s low of ₹1,181.60 apiece on September 29, 2025.

R R Kabel has a total market capitalisation of ₹28,596.46 crore as of September 25, 2026, according to data on the NSE.