Key Highlights
- MosChip Technologies approves acquisition of 73 percent stake in Vayavya Labs for Rs 245.49 crore.
- Deal includes Rs 148.52 crore cash and Rs 96.97 crore via share swap.
- Company to issue 50,50,686 shares at Rs 192 each under preferential allotment.
- Remaining 27 percent stake to be acquired after March 2028 based on performance.
- Vayavya Labs reported Rs 83 crore provisional revenue in FY26.
MosChip Technologies Limited has announced the approval of a strategic acquisition of a 73 percent stake in Vayavya Labs Private Limited, marking a significant move to strengthen its position in semiconductor and engineering solutions. The decision was taken during the company’s board meeting held on April 16, 2026.
The total transaction value stands at Rs 245.49 crore, which will be executed through a combination of cash and share swap. Out of the total consideration, Rs 148.52 crore will be paid in cash, while Rs 96.97 crore will be settled through the issuance of equity shares.
Share Swap and Preferential Issue Details
As part of the transaction, MosChip will issue 50,50,686 equity shares at a price of Rs 192 per share on a preferential basis to the selling shareholders of Vayavya Labs. This issuance is subject to shareholder and regulatory approvals. The company has scheduled an Extraordinary General Meeting on May 12, 2026, to seek shareholder approval for the preferential allotment.
Strategic Rationale Behind the Acquisition
The acquisition is expected to enhance MosChip’s software-led engineering capabilities and support its expansion into higher value product engineering solutions. The company stated that the deal will contribute to revenue growth and improve EBITDA margins.
Vayavya Labs operates in sectors including semiconductors, automotive communication, and consumer electronics. Its expertise in embedded systems, virtualization, and hardware-software integration is expected to complement MosChip’s existing capabilities.
Financial Performance of Vayavya Labs
Vayavya Labs has demonstrated consistent growth over recent years. The company reported a provisional turnover of Rs 83 crore for FY26, compared to Rs 64.4 crore in FY25 and Rs 55.5 crore in FY24.
The company also has a global presence with operations across India, the United States, Europe, Israel, and Japan. Its wholly owned subsidiary in California will become a step-down subsidiary of MosChip upon completion of the transaction.
Future Acquisition Plans
MosChip has also entered into a shareholders’ agreement to acquire the remaining 27 percent stake in Vayavya Labs after March 31, 2028. The valuation for this phase will be linked to the company’s future business performance.
Regulatory Approvals and Timeline
The transaction is subject to approvals from stock exchanges, the Reserve Bank of India, and other regulatory authorities. The acquisition is expected to be completed within 15 days after receiving all necessary approvals and shareholder consent.