What the board approved
Samvardhana Motherson International's board, at its meeting on September 21, 2026, approved the purchase by wholly owned subsidiary Samvardhana Motherson Adsys Tech Limited (SMAST) of a 50.1% equity stake in Rotary Connectors Private Limited (RCPL). The stake will be bought from RCPL's existing shareholders, with the promoters retaining the remaining 49.9%. On completion, RCPL becomes an indirect subsidiary of SAMIL, and SMAST gains the right to appoint a majority of RCPL's directors.
The transaction is for cash consideration and, per the filing, requires no governmental or regulatory approvals. It is expected to close in the fourth quarter of financial year 2026-27, subject to conditions precedent.
The target
RCPL, incorporated in December 2005, manufactures military-grade circular connectors and interconnection solutions used in applications including the aerospace and defence sector. It operates three manufacturing facilities in Bengaluru.
The filing discloses RCPL's turnover for the last three financial years, which has risen steadily over the period. Equity value will be set as enterprise value plus net cash as of the locked-box date of March 31, 2026, adjusted for any leakage or cash withdrawal between that date and closing.
Stated rationale
Motherson framed the deal as a strategic partnership supporting the group's stated aim of diversifying and scaling its aerospace and defence vertical, particularly in Electrical Wiring Interconnect Systems (EWIS). The filing notes that Motherson's existing footprint, geographic reach and customer access in aerospace and defence could potentially be leveraged to accelerate the target's growth.