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Samvardhana Motherson International, through its wholly owned subsidiary Samvardhana Motherson Adsys Tech (SMAST), has approved the acquisition of a 50.1% stake

ICICIdirect Research 22 Sep 2026 DISCLAIMER

News: In a press release, Samvardhana Motherson International, through its wholly owned subsidiary Samvardhana Motherson Adsys Tech (SMAST), has approved the acquisition of a 50.1% stake in Rotary Connectors Pvt Ltd (RCPL) for an enterprise value of ₹500.4 crore in an all-cash transaction, with completion expected by Q4 FY27 subject to conditions precedent. RCPL manufactures military-grade circular connectors and interconnection solutions for aerospace and defence applications and operates three manufacturing facilities in Bengaluru. Its turnover increased from ₹75.2 crore in FY24 to ₹102.8 crore in FY25 and ₹123.5 crore in FY26, implying 64.2% growth over two years.

View: The transaction values RCPL at around ~4x FY26 EV/Sales, while the final equity value will be EV plus net cash as of March 31, 2026. The acquisition strengthens Motherson’s Aerospace & Defence strategy, particularly its Electrical Wiring Interconnect Systems (EWIS) capabilities, while giving RCPL access to Motherson’s global manufacturing footprint, customer relationships and geographic reach.

Impact: Positive

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