Samvardhana Motherson Board Makes Major Decision: To Acquire 50.1% Stake in Rotary Connectors

Major news has emerged regarding the auto component manufacturer Samvardhana Motherson. The company’s board has decided to approve the acquisition of a 50.1% stake in Rotary Connectors.

Samvardhana Motherson Board’s Decision

The board of Samvardhana Motherson has approved the purchase of a 50.1% stake in Rotary Connectors.

Acquisition Based on ₹500 Crore Enterprise Value

The company will acquire the 50.1% stake in Rotary Connectors based on an enterprise value of ₹500 crore. This stake will be purchased through Samvardhana Motherson’s subsidiary, Samvardhana Motherson Adsys Tech Limited (SMAST).

Decline in Samvardhana Motherson Share Price

On September 21, Samvardhana Motherson’s share price fell by 0.68% to ₹161.47. The stock has declined by 1.58% over the last five days and by 4.71% over the past month. However, over six months, the share has risen by 51.42%, and by 46.74% over the past year. Year-to-date, the Samvardhana Motherson stock has gained 31.68%.

Strong First-Quarter Performance

Samvardhana Motherson recorded robust growth in revenue, profit, and operating profit during the June quarter. In the first quarter, the company’s consolidated net profit rose to ₹1,032 crore from ₹512 crore year-on-year. This figure surpassed market estimates of ₹1,008 crore. Consolidated revenue for the June quarter increased to ₹35,244 crore from ₹30,212 crore. The company also demonstrated strong performance at the operating level. EBITDA rose from ₹2,459 crore to ₹3,096 crore on a year-on-year basis, while the EBITDA margin increased from 8 percent to 8.8 percent.