Samvardhana Motherson Expands Global Footprint, Arm To Acquire 50.1% Stake In Rotary For ₹500.4 Crore

Samvardhana Motherson International Ltd has announced plans to acquire a controlling stake in Rotary Connectors Pvt Ltd, bolstering its position in India's aerospace and defense sector. Samvardhana Motherson Adsys Tech Ltd, a wholly-owned subsidiary of the parent company, will acquire a 50.1% equity stake in Rotary Connectors for ₹500.4 crore, as per a regulatory filing. The deal, fully cash-based, is expected to be finalized by the end of FY27, pending regulatory approvals.

During a board meeting on Monday, Samvardhana Motherson International approved the proposed acquisition. Following the transaction, Samvardhana Motherson Adsys Tech will become the majority shareholder, owning 50.1% of Rotary Connectors' equity share capital. The remaining 49.9% will remain with the existing promoters, allowing them to continue their involvement in the company's operations and growth.

The acquisition is part of Samvardhana Motherson's strategy to diversify and expand its presence in the aerospace and defense industries. With the new stake, the company aims to enhance its capabilities in Electrical Wiring Interconnect Systems, a critical segment used in aircraft, defense platforms, and other specialized equipment. Rotary Connectors primarily manufactures military-grade circular connectors and interconnection solutions, catering to various industries, including aerospace and defense.