The Board of Directors of Samvardhana Motherson International Limited has received and approved a significant corporate transaction to purchase a majority stake in Rotary Connectors Private Limited. The Board granted approval to Rotary Connectors Private Limited to issue equity shares to acquire a 50.1% stake from the existing shareholders of Rotary Connectors Private Limited at its meeting held on 21 September 2026. The transaction will close through Samvardhana Motherson Adsys Tech Limited, a wholly owned subsidiary of Samvardhana Motherson International Limited.

Transaction structure and corporate governance transition

The transaction is subject to customary conditions precedent, satisfaction of which is outlined in the acquisition agreement. With the successful completion and closure of the aforesaid equity purchase, Samvardhana Motherson Adsys Tech Limited shall become the owner of 50.1% of the total equity share capital of Rotary Connectors Private Limited. 

Rotary Connectors Private Limited is to be an indirect subsidiary of Samvardhana Motherson International Limited. As per the agreed ownership structure, the existing promoters of Rotary Connectors Private Limited shall hold the remaining 49.9% stake in the target company.

Rotary Connectors Private Limited is acquired at an enterprise value of ₹500.4 crore. Transaction consideration shall be paid in cash, with the units of consideration being calculated as the enterprise value at 31 March 2026 (as adjusted for leakage or cash withdrawals by the date of the formal closing of the transaction).

After the final completion of the acquisition, Samvardhana Motherson Adsys Tech Limited will be appointed the majority shareholder on the Board of Directors of Rotary Connectors Private Limited. 

This governance right stems from the 50.1% equity capital in place, validated by its status as majority shareholder. The transaction will not constitute a related party transaction, and final close is expected to occur by the fourth quarter of FY27, subject to satisfaction of all conditions precedent.

Business synergy and financial performance

Rotary Connectors Private Limited is a well-established operating unit in the aerospace and defence sector, with expertise in the development and manufacturing of military-grade circular connectors and advanced interconnect solutions. 

The products developed and produced by Rotary Connectors Private Limited are increasingly deployed in the wider interconnection solutions market, including in tough interconnection solutions environments within defence and aerospace programs. The target company has recorded positive growth in recent financial years. Rotary Connectors Private Limited had an operational turnover of ₹123.5 crore for FY26. 

In comparison to stakeholder revenues in the previous financial periods, this performance positions itself on an upward trend, as the company posted a turnover of ₹102.8 crore during FY25 and ₹75.2 crore during FY24. A steady growth in revenue highlights continued strength in the market for military-grade localized interconnects and components.

The acquisition is consistent with the broader long-term strategy of Samvardhana Motherson International Limited to grow and diversify into the high-growth aerospace and defence market segment. 

The proposed merger with Rotary Connectors Private Limited would add to the specialized expertise of the Motherson Group within the domain of Electrical Wiring Interconnect Systems.

The partnership will optimise speed to market by synergising the target company’s product engineering expertise with Samvardhana Motherson International Limited’s global geographic presence and its extensive existing footprint in the aerospace and defence sector. 

This partnership will enable Rotary Connectors Private Limited to gain access to Motherson’s customers, which will provide the company’s next phase of growth in interconnection technology.

Conclusion

The board approval of the acquisition of the 50.1% controlling interest in Rotary Connectors Private Limited from Samvardhana Motherson Adsys Tech Limited is a major landmark in the journey of Samvardhana Motherson International Limited. The company’s acquisition of majority control, with the founding promoters maintaining a 49.9% stake, enhances its footprint in the military-grade connector and Electrical Wiring Interconnect Systems industry. This strategic transaction is expected to be completed by Q4 FY27 at an enterprise value of ₹500.4 crore, representing Samvardhana Motherson International Limited’s continued investment in its indigenously developed specialised aerospace and defence business.