Samvardhana Motherson To Acquire 50.1% Stake In Rotary Connectors For ₹500 Crore
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Samvardhana Motherson International has approved the acquisition of a 50.1% stake in Rotary Connectors through SMAST for an enterprise value of ₹500 crore.
Samvardhana Motherson International has approved the acquisition of a 50.1% equity stake in Rotary Connectors through its wholly owned subsidiary, Samvardhana Motherson Adsys Tech (SMAST), for an enterprise value of ₹500 crore.
The acquisition will expand Samvardhana Motherson's presence in the aerospace and defence sector, particularly in the electrical wiring interconnect system segment.
The Samvardhana Motherson share price was ₹162.91 at the end of the day on 21 September on the National Stock Exchange (NSE). The stock opened at ₹163.12 and touched an intraday high of ₹163.77 and a low of ₹160.50.
What Is The Rotary Connectors Acquisition?
Under the approved transaction, SMAST will acquire a 50.1% stake in Rotary Connectors. The deal is subject to the satisfactory completion of conditions precedent.
Following completion, Rotary Connectors will become an indirect subsidiary of Samvardhana Motherson International.
Rotary Connectors manufactures military-grade circular connectors and interconnection solutions used across applications including aerospace and defence. The company reported a turnover of ₹123.5 crore in FY26 and operates three manufacturing facilities, all located in Bengaluru.
The company said its existing footprint, geographic reach and customer access could be leveraged to accelerate the growth of the acquired business. Rotary Connectors will also gain access to the wider Motherson Group's established footprint and reach.
The transaction is part of Motherson Group's stated plan to diversify and scale its aerospace and defence sector business.
How Did Samvardhana Motherson Perform In Q1 FY27?
The company’s consolidated net profit rose 101.64% year-on-year to ₹1,032.05 crore for the quarter ended 30 June 2026, compared with ₹511.84 crore in Q1 FY26.
Revenue from operations increased 16.65% to ₹35,243.77 crore from ₹30,212 crore. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 30.44% to ₹2,950 crore from ₹2,262 crore, while EBITDA margin improved to 8.37% from 7.49%.
Samvardhana Motherson International had a market capitalisation of around ₹1.11 lakh crore on 21 September. The stock's 52-week high stood at ₹173.27, while its 52-week low was ₹101.01.
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
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