On Monday, September 28, R R Kabel’s board of directors approved the acquisition of UM Cables Ltd’s optical fibre cable (OFC) business, a move that will place the company in the OFC segment for the first time. The decision was announced after a regulatory filing dated September 25, which outlined the terms of the deal. The acquisition is described by the firm as an important step in expanding its presence in the broader communication cables market and is expected to complement its existing cable portfolio.

The proposed acquisition will be executed on a slump sale and on a concern basis for a lump‑sum cash consideration of ₹77 crore, as per the regulatory filing. UMCL, a wholly owned subsidiary of Usha Martin Ltd, manufactures and sells optical fibre and related cables. By acquiring UMCL’s established platform, R R Kabel will gain ready manufacturing assets, existing approvals and an operating track record, thereby accelerating its expansion into communication cables without building the platform organically.

Rajesh Kabra, Joint Managing Director of R R Kabel, said the acquisition is a strategic step in expanding the company’s presence into the communication infrastructure space and marks its entry into the Optical Fibre Cable segment. He added that acquiring an established operating platform with ready manufacturing assets, existing approvals and a demonstrated track record provides a strong foundation in OFC and significantly shortens the time required to build these capabilities organically. He believes the company’s scale, manufacturing capabilities, market reach and customer relationships can unlock the next phase of growth for this business while strengthening the overall cables portfolio.

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, after the acquisition approval was announced post‑market. The scrip has risen 3% in the past week but declined 10% over the month. On a year‑to‑date basis, it has surged 72%. The stock hit a 52‑week high of ₹2,983.80 per equity share on August 24, 2026, and touched a year’s low of ₹1,181.60 apiece on September 29, 2025.

As of September 25, 2026, R R Kabel has a total market capitalisation of ₹28,596.46 crore according to data on the NSE. The company’s entry into the OFC segment through this acquisition is expected to broaden its communication cables portfolio and accelerate growth. The deal provides an established platform with ready manufacturing assets, existing approvals and an operating track record, allowing the firm to enter the segment with established capabilities rather than building the platform organically. This strategic move is anticipated to strengthen the overall cables portfolio and unlock further growth opportunities.