MosChip shares surged 5% following the announcement of a significant acquisition deal, according to market reports. The stock price movement reflects positive investor sentiment toward the company's strategic expansion plans.
The board of directors has approved the acquisition of 73% stake in Vayavya Labs for ₹245.49 crore, as reported by market sources. The transaction was formally approved on April 16, 2026, under Regulation 30 of SEBI Listing Regulations. The acquisition comprises ₹148.52 crore in cash and ₹96.97 crore through share swap to 67 investors/allottees, with 50,50,686 equity shares to be issued.
The 73% stake acquisition in Vayavya Labs is expected to strengthen MosChip's position in the semiconductor industry, according to market analysts. Vayavya Labs, incorporated in 2006 and headquartered in Belagavi, Karnataka, specializes in embedded systems, virtualization, and verification technologies. The company operates development centers in Bengaluru and Belagavi, with international presence in the United States, Europe, Israel, and Japan. Post-acquisition, MosChip will have over 2,000 employees across six strategic locations including Silicon Valley, with 28% women employees and an average age of approximately 29 years.
The acquisition strengthens MosChip's software-led engineering capabilities and supports top-line growth while enhancing EBITDA performance. Vayavya Labs has executed a Shareholders' Agreement for acquiring the remaining 27% stake after March 31, 2028, with valuation linked to the company's business performance. The acquisition will be completed within 15 days of receiving all requisite approvals and shareholder consent. The company has scheduled an Extraordinary General Meeting (EGM) for May 12, 2026, to seek shareholder approval for the preferential issue of equity shares.
