Samvardhana Motherson Adsys Tech Ltd (SMAST) has agreed to acquire a 50.1% stake in Rotary Connectors Pvt Ltd (RCPL) from its existing shareholders for a cash consideration of ₹500 crore.
The transaction is expected to be completed by the fourth quarter of FY27. The equity value will be determined based on enterprise value plus net cash as on the locked-box date of March 31, 2026, with adjustments for any leakage or cash withdrawal between the locked-box date and closing.
RCPL To Become Indirect Subsidiary
SMAST is a wholly owned subsidiary of Samvardhana Motherson International Ltd (SAMIL), which has approved the transaction.
Following completion, SMAST will hold 50.1% of RCPL’s equity share capital, making RCPL an indirect subsidiary of SAMIL. The existing promoters of RCPL will continue to hold the remaining 49.9% stake.
Focus On Aerospace And Defence
RCPL manufactures military-grade circular connectors and interconnection solutions for diverse applications, including the aerospace and defence sectors.
The company operates three manufacturing facilities in Bengaluru. Its capabilities in connectors and interconnection solutions are expected to complement Motherson’s presence in the aerospace and defence industry.
Partnership To Support EWIS Expansion
The strategic partnership supports Motherson Group’s strategy of diversifying and scaling its aerospace and defence business, particularly in the Electrical Wiring Interconnect System (EWIS) segment.
Motherson’s established aerospace and defence footprint, along with its geographic reach and customer access, could potentially be leveraged to accelerate the growth of RCPL’s business.