UMUsha Martin517146Strategic exit plan

Board approves slump sale of subsidiary's optical fibre cable business to R R Kabel for Rs. 77 crore

Board approved sale of the entire business undertaking of wholly owned subsidiary U M Cables Limited (UMCL) to R R Kabel Limited on a going-concern basis via slump sale.

By ScoutQuest · Thu 24 Sep 2026, 9:47 PM IST · 2 min read

Sale Consideration

Rs. 77 crore, subject to working capital adjustments

UMCL FY26 Revenue

Rs. 78.19 crore, about 2.12% of consolidated revenue of Rs. 3,691.06 crore

UMCL Net Worth

Rs. 35.32 crore, about 1.07% of consolidated net worth of Rs. 3,302.08 crore

Buyer

R R Kabel Limited, a listed public company

Expected Completion Timeline

Within 60 days from execution of the Business Transfer Agreement

What was approved

The Boards of Usha Martin Limited and its wholly owned (non-material) subsidiary U M Cables Limited approved the sale, transfer and disposal of UMCL's business undertaking to R R Kabel Limited on a going-concern basis by way of a slump sale. A slump sale means the whole business is sold as one lot for a single price, rather than asset by asset. The Boards also approved entering into a Business Transfer Agreement with the buyer.

Price

• Consideration: Rs. 77 crore, subject to working capital adjustments as set out in the BTA.

Size of the business being sold

• UMCL revenue from operations for FY ended 31st March 2026: Rs. 78.19 crore, about 2.12% of Usha Martin's consolidated revenue of Rs. 3,691.06 crore.
• UMCL audited net worth as of 31st March 2026: Rs. 35.32 crore, about 1.07% of consolidated net worth of Rs. 3,302.08 crore.
• The undertaking being transferred represents the entire business of UMCL.

What UMCL does

Manufacturing and selling of optical fibre cables, jelly-filled telecommunication cables and fibre-reinforced plastic rods.

The buyer

R R Kabel Limited, a listed public company based in Mumbai, engaged in cables, wires, lights, fans and appliances, with revenue from operations of Rs. 9722.36 crore as on 31st March 2026. It does not belong to Usha Martin's promoter or promoter group, so this is not a related party transaction.

Rationale stated

The company says the transaction aligns with its strategy to streamline its portfolio and sharpen focus on its core wire and wire ropes business, and is expected to enable more efficient deployment of capital towards long-term growth priorities.

Conditions and timeline

• Completion is subject to approval of UMCL's shareholders and other conditions precedent in the BTA.
• Expected to complete on or before the Long Stop Date, being 60 days from execution of the BTA, or another mutually agreed date.

Other points

• UMCL will continue to be a wholly owned subsidiary after completion; no equity shares of UMCL are being sold or transferred.
• There will be no change in the shareholding pattern of the listed entity.
• The transaction is outside the scope of a Scheme of Arrangement.
• Board meeting ran from 8:30 p.m. to 8:55 p.m.

How investors may read it

This is a divestment of a small, non-core business — roughly 2% of consolidated revenue — at a price above its stated net worth, with cash proceeds intended for the core wire ropes business. The deal is not yet complete and depends on the BTA and conditions precedent being fulfilled.

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