SYNOPSIS: Company to acquire 73 percent stake in Vayavya Labs for Rs. 245 crore to strengthen engineering capabilities, drive growth, expand scale, and enhance margins, with the remaining stake linked to future performance.
During Thursday’s trading session, shares of India’s first publicly listed fabless semiconductor company and one of the leading providers of silicon and product engineering services surged nearly 7 percent on BSE, after a strategic Rs. 245 crore acquistion deal to expand semiconductor capabilities.
With a market cap of Rs. 3,743 crores, shares of Moschip Technologies Limited are currently trading in the green at Rs. 193.1 on BSE, up by around 5 percent, compared to its previous closing price of Rs. 184.15. The stock has delivered positive returns of around 24 percent in one year, and has gained by about 17 percent in the last one month.
What’s the News
According to the latest exchange disclosures on the stock exchanges, the Board of Moschip Technologies Limited has approved the acquisition of a 73 percent controlling stake in Vayavya Labs Private Limited, subject to receipt of all requisite statutory, regulatory and other approvals. This move aligns with the company’s strategy to scale its software-led product engineering solutions business.
The acquisition of the 73 percent stake is valued at Rs. 245.49 crores. The consideration will be structured through a mix of 60.5 percent cash, funded via internal accruals, and 39.5 percent through a share-swap arrangement.
The remaining 27 percent stake will be acquired post 31st March 2028, with the final valuation linked to Vayavya Labs’ business performance, allowing for a performance-based alignment. Following the acquisition, MosChip’s total workforce is expected to exceed 2,000 employees, enhancing its operational scale and execution capabilities.
Strategically, the acquisition is expected to strengthen the company’s software-led engineering capabilities, support revenue growth, and improve EBITDA margins. It also enables the company to move higher up the value chain in product engineering, while expanding its geographical presence and diversifying its business portfolio.
Overall, the acquisition is expected to be value-accretive and aligns with MosChip’s long-term objective of building a scalable and differentiated product engineering business with improved margin resilience.
Incorporated in 2006 and headquartered in Belgavi, Vayavya Labs has established itself as a “silicon-to-system” engineering partner across sectors such as semiconductors, consumer electronics, automotive, electronic design automation, and communications. The company operates delivery centres in Belagavi and Bengaluru.
Financials & More
MosChip Technologies Limited is a publicly traded company specialising in semiconductor and product engineering solutions. It is engaged in the business of engineering solutions comprising systems and product design, IoT solution design, artificial intelligence and Machine Learning, FPGA design, Mixed Signal IP design, ASIC design, verification, and validation.
The company reported a significant growth in revenue from operations, experiencing a year-on-year increase of over 18 percent, from Rs. 126 crores in Q3 FY25 to Rs. 149.4 crores in Q3 FY26.
However, its net profit decreased during the same period from Rs. 11 crores to Rs. 4.34 crores, representing a decline of around 61 percent YoY. This decrease is primarily attributable to the salary revisions implemented during the period.
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