A subsidiary of the auto component manufacturer Samvardhana Motherson International Ltd, namely Samvardhana Motherson Adsys Tech Ltd (SMAST), has received approval to purchase 50.1 percent of the equity capital of Rotary Connectors Pvt Ltd at an enterprise valuation of 500.4 crore rupees.
The Board of Directors of Samvardhana Motherson International approved the deal, which will be executed entirely in cash, according to regulatory filings as of Monday. The transaction is expected to be completed by the end of the 2026-2027 fiscal year.
After the completion of the deal, SMAST will own 50.1 percent of the equity capital of Rotary Connectors Pvt Ltd (RCPL), after which RCPL will become an indirect subsidiary of Samvardhana Motherson International. Meanwhile, the promoters of RCPL will retain 49.9 percent of the equity capital in the company.
According to regulatory documentation, the Board of Directors of Samvardhana Motherson International Ltd (SAMIL) reviewed and approved the acquisition of 50.1 percent of the equity capital in Rotary Connectors Pvt Ltd by Samvardhana Motherson Adsys Tech Ltd, which is a wholly-owned subsidiary of the company, from the existing shareholders of RCPL during its meeting today.
This strategic partnership aligns with the Motherson group's vision for diversification and expansion of its business in the aerospace and defense sectors, particularly in the field of electrical wiring and connection systems.
Rotary Connectors specializes in manufacturing military-grade circular connectors and connection solutions for diverse applications across various sectors, including the aerospace and defense industries.
