Moschip Technologies to Acquire 73% Stake in Vayavya Labs Private Limited
Moschip Technologies Ltd announced a significant strategic acquisition, approving the purchase of a 73% stake in Vayavya Labs Private Limited (VLPL). The total consideration for the acquisition stands at ₹ 245.49 crores, paid through a combination of cash and swap shares.The Board of Directors of Moschip Technologies held a meeting on April 16, 2026, and approved the Share Purchase Agreement (SPA) to acquire the stake from VLPL’s existing shareholders.
Transaction Structure Details
The total consideration of ₹ 245.49 crores is structured as follows:
- Cash component: ₹ 148.52 crores
- Swap shares component: ₹ 96.97 crores
To fulfill the consideration involving swap shares, the company approved the issuance, offer, and allotment of 50,50,686 equity shares of Moschip Technologies. These shares, referred to as 'Swap Shares', will be issued to the selling shareholders of VLPL on a preferential basis. The issue price for the swap shares is set at ₹ 192 per share.
Moschip confirmed that the company plans to conduct a shareholders' meeting (EGM) on May 12, 2026, to seek necessary shareholder approval for the preferential issue of the equity shares.
Future Acquisition Plans
The acquisition plans also included a timeline for the remaining stake. A Shareholders' Agreement (SHA) will be executed with VLPL shareholders after March 31, 2028, to acquire the remaining 27% shareholding. The valuation of this final tranche will be linked to VLPL's business performance.
Profile of Vayavya Labs Private Limited
Vayavya Labs Private Limited (VLPL) is engaged in critical technology sectors including Semiconductors, Consumer Electronics (CE), and Mobility/Automotive Communication & Connectivity. Incorporated on July 28, 2006, VLPL’s expertise lies in embedded systems, virtualization, and verification technologies. The company is recognized for its pioneering work in Hardware-Software Interface (HSI) methodologies, offering solutions like digital twin and virtual ECU solutions, ADAS validation, and automotive functional safety.
VLPL serves a global customer base and has development centers in India (Bengaluru and Belagavi), along with a presence in international markets including the United States, Europe, Israel, and Japan. The company has a wholly owned subsidiary in California, USA, named Vayavya Labs Inc, which will become a step down subsidiary to Moschip upon completion of the acquisition.
Financial Performance Overview
Moschip provided the following turnover details for VLPL for the last three financial years:
| Financial Year | Turnover (₹ crores) |
|---|---|
| Provisional financials for FY 2025-26 | 83 |
| 2024-25 | 64.4 |
| 2023-24 | 55.5 |
The acquisition is positioned to strengthen Moschip's engineering capabilities, aid in top-line growth and EBITDA, and facilitate geographical expansion within the Product Engineering Solutions sector.
MOSCHIP Stock Price Movement
On Wednesday, Moschip Technologies Limited shares edged higher, closing at ₹184.06 after gaining 6.49% for the session. The stock recorded a trading range between ₹178.05 and ₹185.00, with 2.40 million shares transacted during the day.Source:
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