The board of Samvardhana Motherson International (SAMIL) has approved the purchase of a 50.1% equity stake in Rotary Connectors (RCPL) by its wholly owned subsidiary Samvardhana Motherson Adsys Tech (SMAST). According to the latest regulatory filing, the board meeting was held today (Monday) and the approval was granted during this session. The transaction is subject to satisfactory completion of conditions precedent, with the deal structure finalized as an all-cash transaction.
Post completion of the transaction, SMAST will hold 50.1% of equity share capital of Rotary Connectors and thereupon, RCPL will become an indirect subsidiary of SAMIL. As reported in the regulatory filing, the enterprise value for the acquisition is set at ₹500.4 crore, with the equity value 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 promoters of RCPL will continue to hold 49.9% equity stake in the company, maintaining their majority control while allowing SAMIL to gain significant influence through its subsidiary structure.
This acquisition will significantly expand SAMIL's presence in the Aerospace and Defence sector, positioning the company to leverage its established presence, geographic reach, and customer access to accelerate RCPL's growth. 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. The company has diversified applications across multiple sectors, including aerospace and defence. For the Financial Year 2026, RCPL reported a turnover of ₹123.5 crore. The strategic partnership supports Motherson's vision of diversifying and scaling its Aerospace and Defence business vertical, particularly in Electrical Wiring Interconnect Systems (EWIS).
The transaction is expected to be completed by the end of financial year 2026-2027, contingent on the satisfaction of all conditions precedent. As per the regulatory filing, the deal structure has been finalized as an all-cash transaction, with no share swap or other forms of consideration involved. 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 transaction represents a significant step in SAMIL's expansion strategy, positioning the company for enhanced operational control while maintaining the current promoter structure.
