SAMIL shares: Stock fall 2%; company buys 50.1% stake in aerospace & defence firm

Samvardhana Motherson International Ltd (SAMIL) shares fell 2% on Monday after the company said its wholly-owned subsidiary, Samvardhana Motherson Adsys Tech Ltd (SMAST), will acquire a 50.1% stake in Rotary Connectors Pvt Ltd (RCPL). The acquisition will make RCPL an indirect subsidiary of SAMIL, subject to the completion of the conditions precedent.

According to the company's exchange filing, SMAST will acquire the stake from RCPL's existing shareholders, while the promoters of Rotary Connectors will retain the remaining 49.9% stake. The transaction has an enterprise value of Rs 500.4 crore and will be completed through cash consideration. No governmental or regulatory approvals are required for the acquisition.

Samvardhana Motherson shares fell 2.34% on Monday, hitting a low of Rs 160.55, compared with their previous close of Rs 164.40.

Rotary Connectors is engaged in the manufacture of military-grade circular connectors and interconnection solutions, with applications including the aerospace and defence sectors. The company was incorporated in December 2005 and has three manufacturing facilities in Bengaluru.

The acquisition is part of SAMIL's strategy to diversify and scale its aerospace and defence business, particularly in the area of Electrical Wiring Interconnect Systems (EWIS), according to the filing. The company said its existing presence in aerospace and defence, along with its geographic reach and customer access, could help accelerate the growth of Rotary Connectors.

Rotary Connectors reported turnover of Rs 123.5 crore in FY26, compared with Rs 102.8 crore in FY25 and Rs 75.2 crore in FY24. The target company operates in the aerospace and defence industry, while its products have applications across the broader interconnection solutions space. Following completion of the transaction, SMAST will hold 50.1% of RCPL's equity and will have the right to appoint a majority of directors to its board. The acquisition is expected to be completed by the fourth quarter of FY27, subject to the satisfaction of the conditions precedent.