Motherson to acquire 50.1% stake in Rotary Connectors for ₹500.4 Crore
Samvardhana Motherson International Limited will acquire a 50.1% stake in Rotary Connectors Private Limited for an enterprise value of ₹500.4 crore. The acquisition aims to strengthen Motherson's Aerospace and Defence business. The transaction is expected to be completed by Q4 FY2026-27.
The acquisition of a significant stake in a company operating in the strategic Aerospace and Defence sector is a material development. However, the financial impact will depend on the integration and future performance of the acquired entity, placing it at a medium impact level.
The acquisition of a majority stake in Rotary Connectors Private Limited is a strategic move that is expected to enhance Motherson's presence in the Aerospace and Defence sector, indicating a positive development for the company's growth prospects.
Samvardhana Motherson International Limited (SAMIL) has announced the approval by its Board of Directors for a significant acquisition. Samvardhana Motherson Adsys Tech Limited (SMAST), a wholly-owned subsidiary of SAMIL, will purchase a 50.1% equity stake in Rotary Connectors Private Limited (RCPL) from its existing shareholders. This transaction is subject to the satisfactory completion of certain conditions precedent.
Upon completion, RCPL will become an indirect subsidiary of SAMIL, with SMAST holding 50.1% of its equity share capital. The promoters of RCPL will retain the remaining 49.9% stake. The Board of Directors meeting where this approval was granted commenced at 09:20 hours IST and concluded at 10:00 hours IST on September 21, 2026.
RCPL is engaged in the business of manufacturing military-grade circular connectors and interconnection solutions, with applications in the Aerospace and Defence sectors. For the financial year 2025-26, RCPL reported a turnover of ₹123.5 crore (INR 1,235 Million). The acquisition is strategically aligned with Motherson Group's vision to diversify and scale its Aerospace and Defence business vertical, specifically in Electrical Wiring Interconnect Systems (EWIS). Motherson's existing footprint and geographic reach are expected to accelerate RCPL's growth.
The enterprise value for the acquisition is ₹500.4 crore (INR 5,004 Million). The equity value will be determined based on the enterprise value plus net cash as of March 31, 2026, with adjustments for any cash movements between that date and the closing date. No specific governmental or regulatory approvals are required for this acquisition. The transaction is anticipated to be completed by the fourth quarter of the financial year 2026-2027, subject to the satisfaction of conditions precedent.
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Samvardhana Motherson International Limited filed this with the NSE as a statutory disclosure, categorised under acquisition. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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