Board approves acquisition of U M Cables' business undertaking via slump sale for Rs. 77 crores
Board has approved the purchase and acquisition of the Business Undertaking of U M Cables Limited (a wholly-owned subsidiary of Usha Martin) by way of a slump sale on a going concern basis.
By ScoutQuest · · 2 min read
- Acquisition Consideration
- Rs. 77 crores, subject to working capital adjustments
- Target Company
- U M Cables Limited (wholly-owned subsidiary of Usha Martin)
- Target Turnover FY 2025-26
- Rs. 7,818.64 Lakhs
- Target Turnover FY 2024-25
- Rs. 9,991.05 Lakhs
- Expected Completion Timeline
- On or before 60 days from BTA execution
What was approved
The Board of Directors, at its meeting held on 24 September 2026, approved the purchase and acquisition of the Business Undertaking of U M Cables Limited (UMCL), a wholly-owned subsidiary of Usha Martin Limited, by way of a slump sale on a going concern basis.
A slump sale means the entire business is bought as one lump, rather than buying shares of the company. The update states the transaction does not involve acquisition of shares, and the undertaking being purchased represents the entire business of UMCL.
Consideration
- Lump sum cash consideration of Rs. 77 crores
- Subject to certain working capital adjustments and fulfilment of conditions to be set out in the Business Transfer Agreement (BTA)
- Nature of consideration: cash
What is being bought
UMCL is engaged in manufacturing and selling Optical Fibre and related Cables, in the telecommunication cable manufacturing industry. It was incorporated on 7 July 1987 and operates in India.
Turnover of UMCL
- FY 2025-26: Rs. 7,818.64 Lakhs
- FY 2024-25: Rs. 9,991.05 Lakhs
- FY 2023-24: Rs. 13,534.48 Lakhs
The turnover trend shown is declining across the three years.
Stated rationale
The acquisition is aligned with the strategic objective of the company to enter into the Optical Fibre Cable segment and expand its presence in the communication cable segment. The company states it is expected to enhance its product offerings and operational capabilities.
Timeline and conditions
- Expected to be completed on or before the Long Stop Date, being 60 days from the date of execution of the BTA, or such other date as mutually agreed
- Subject to satisfactory fulfilment of conditions precedent
- Governmental or regulatory approvals: Not Applicable
Related party status
The seller is stated to be unrelated to the company or its promoter / promoter group / promoter group companies, and the acquisition would not fall within related party transactions.
Meeting details
The Board meeting commenced at 8:30 p.m. and concluded at 9:13 p.m.
How to read this
This is an approval stage disclosure; the BTA is yet to be executed and the final amount may change with working capital adjustments. Investors may watch for execution of the BTA and completion of the transaction within the stated period.
Also from R R Kabel
Board meeting on 28 October 2026 to consider Q2 results and interim dividend
23 Oct 2026
Business Transfer Agreement Executed to Acquire U M Cables' Business Undertaking via Slump Sale
25 Sep 2026
Board approves acquisition of U M Cables' Optical Fibre Cable business for ₹77 crore via slump sale
25 Sep 2026
More numbers
- Lump sum purchase considerationRs. 77 crores
- UMCL turnover FY 2025-26Rs. 7,818.64 Lakhs
- UMCL turnover FY 2024-259,991.05
- UMCL turnover FY 2023-2413,534.48
- Long Stop Date from BTA execution60 days
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