MosChip Technologies announces Strategic Acquisition of Vayavya Labs for ₹245.49 Crores

MosChip Technologies Limited (BSE: 532407), a leading semiconductor and system design services company, today announced that its Board of Directors has approved the acquisition of a 73% stake in Vayavya Labs Private Limited (VLPL).

This strategic move is designed to enhance MosChip's software-led engineering capabilities and expand its footprint in the high-growth automotive and semiconductor software segments.

Transaction Details

The acquisition is structured as a mix of cash and equity, valuing the 73% stake at ₹245.49 crores:

Cash Consideration: ₹148.52 crores (60.50% of the deal), funded through internal accruals.

Share Swap: ₹96.97 crores (39.50% of the deal) via the issuance of 50,50,686 equity shares of MosChip at a preferential price of ₹192 per share.

Future Acquisition: MosChip has entered into a Shareholders' Agreement to acquire the remaining 27% stake after March 31, 2028, with valuation linked to VLPL's future performance.

About Vayavya Labs Private Limited (VLPL)

Headquartered in Belagavi, Karnataka, with a subsidiary in California, USA, Vayavya Labs is a pioneer in Hardware-Software Interface (HSI) methodologies and embedded systems.

Financial Growth (Turnover in ₹ Crores):

FY 2025-26 (Provisional): ₹83.0 Cr
FY 2024-25: ₹64.4 Cr
FY 2023-24: ₹55.5 Cr
FY 2022-23: ₹38.1 Cr

Vayavya specializes in ADAS (Advanced Driver Assistance Systems), digital twins, and virtual ECU solutions, serving global clients across Japan, Europe, Israel, and the USA.

Strategic Rationale

MosChip's management highlighted several key drivers for the acquisition:

Up the Value Chain: Strengthens MosChip's position in Product Engineering Solutions.

Sector Diversification: Expands presence in Mobility/Automotive Communication and Connectivity.

Financial Impact: Vayavya is an EBITDA-accretive business with a significant portion of revenue coming from foreign exchange (Forex).

Geographical Expansion: Leverages Vayavya's development centers in Bengaluru and Belagavi along with its international presence.

The transaction is subject to:

Shareholder Approval: An Extraordinary General Meeting (EGM) is scheduled for May 12, 2026.

Regulatory Clearances: Approvals from Stock Exchanges and the Reserve Bank of India (RBI).

Timeline: Completion is expected within 15 days of receiving the requisite approvals.

Upon completion, Vayavya Labs Inc. (USA) will become a step-down subsidiary of MosChip Technologies.

Shares of Moschip Technologies Ltd was last trading in BSE at Rs. 184.15 as compared to the previous close of Rs. 173.50. The total number of shares traded during the day was 295810 in over 4185 trades.

The stock hit an intraday high of Rs. 184.85 and intraday low of 178.25. The net turnover during the day was Rs. 53906651.00.