Samvardhana Motherson International Limited (SAMIL) has announced that its wholly-owned subsidiary, Samvardhana Motherson Adsys Tech Limited (SMAST), will acquire a 50.1% equity stake in Rotary Connectors Private Limited (RCPL). This transaction will make RCPL an indirect subsidiary of SAMIL, enhancing its presence in the Aerospace and Defence sector. The deal is expected to be completed by Q4 FY 2026-2027, subject to conditions precedent.
Strategic Acquisition in Aerospace and Defence
Samvardhana Motherson International Limited (SAMIL) has approved the acquisition of a significant 50.1% equity stake in Rotary Connectors Private Limited (RCPL) through its wholly-owned subsidiary, Samvardhana Motherson Adsys Tech Limited (SMAST). This move is set to expand SAMIL’s footprint in the critical Aerospace and Defence sector.
Transaction Details and Future Structure
Upon successful completion of the transaction, RCPL will transition to becoming an indirect subsidiary of SAMIL, with SMAST holding the majority equity share capital. The existing promoters of RCPL will retain the remaining 49.9% equity stake. The Board of Directors of SAMIL considered and approved this significant acquisition on September 21, 2026.
Target Entity Profile
Rotary Connectors Private Limited is engaged in the manufacturing of military-grade circular connectors and interconnection solutions, with applications in the Aerospace and Defence Sector. For the Financial Year 2025-26, RCPL reported a turnover of INR 1,235 Million. The company has its operations based in Bengaluru, India, with three manufacturing facilities.
Deal Rationale and Expected Impact
This strategic partnership is intended to bolster Motherson Group’s vision for diversification and scaling within its Aerospace and Defence business vertical, particularly in Electrical Wiring Interconnect Systems (EWIS). The acquisition is expected to leverage Motherson’s established presence, geographic reach, and customer access to accelerate RCPL’s growth.
Financials and Timeline
The enterprise value for the acquisition is set at INR 5,004 Million. The equity value will be determined based on the enterprise value plus net cash as of the locked-box date of March 31, 2026, with adjustments for any leakage or cash withdrawal. The transaction is anticipated to be completed by Quarter 4 of the financial year 2026-2027, contingent on the satisfaction of all conditions precedent.
Source: BSE
