MosChip Technologies has received board approval for its strategic acquisition of a controlling 73% stake in Vayavya Labs Private Limited. The board meeting held on April 16, 2026, formally approved the ₹245.49 crore transaction under Regulation 30 of SEBI Listing Regulations, marking a significant milestone in the company's expansion strategy.

Board Meeting Outcomes and Transaction Structure

The board of directors approved a comprehensive acquisition framework comprising both cash and equity components. The hybrid payment structure includes ₹148.52 crores in cash and ₹96.97 crores through preferential share issuance to 67 investors/allottees.

Shareholder Approval and EGM Schedule

The board has scheduled an Extraordinary General Meeting (EGM) for May 12, 2026, to seek shareholder approval for the preferential issue of equity shares. The transaction requires multiple regulatory approvals, including in-principle approval from stock exchanges and Reserve Bank of India clearance. The board meeting commenced at 8:00 a.m. and concluded at 11:55 a.m.

Target Company Profile and Strategic Benefits

Vayavya Labs, incorporated on July 28, 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.

The target company has an issued and paid-up capital of ₹67.97 lakhs divided into 6,79,090 equity shares of ₹10 each. Vayavya Labs also has a wholly owned subsidiary, Vayavya Labs Inc, in California, USA, which will become a step-down subsidiary of MosChip post-acquisition.

Strategic Capabilities and Market Positioning

Vayavya Labs holds 9 granted patents and actively drives key industry standards in the Semiconductor and Automotive verticals. The company's core strength lies in its expertise in Hardware-Software Interface methodologies, digital twin solutions, and ADAS validation. Post-acquisition, MosChip will have an overall headcount of more than 2,000 employees across six strategic locations including Ahmedabad, Belagavi, Bengaluru, Hyderabad, Pune, and Silicon Valley.

Future Acquisition Plans and Business Impact

The acquisition strengthens MosChip's software-led engineering capabilities and supports top-line growth while enhancing EBITDA performance. Vayavya Labs' delivery model is characterized by a significant share of turnkey and fixed-price contracts, particularly in complex and long-duration engineering programs. The company has also executed a Shareholders' Agreement for acquiring the remaining 27% stake after March 31, 2028, with valuation linked to Vayavya Labs' business performance. The acquisition will be completed within 15 days of receiving all requisite approvals and shareholder consent.

MosChip Technologies Limited has announced that its Board of Directors will convene on April 16, 2026, to consider a preferential issue of equity shares. The meeting notification was formally communicated to stock exchanges on April 12, 2026.

Regulatory Compliance and Meeting Details

The board meeting has been scheduled in compliance with SEBI regulations, specifically under Regulation 29(1)(d) and Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. The company has provided the mandatory intimation to both major stock exchanges where its shares are listed.

Preferential Issue Framework

The proposed preferential issue will be considered under the provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. This regulatory framework governs the issuance of securities through preferential allotment, ensuring compliance with prescribed norms and investor protection measures.

Exchange Communications

MosChip Technologies has formally notified both stock exchanges about the upcoming board meeting. The communication was addressed to the General Manager, Department of Corporate Services at BSE Limited, and the Listing Department at National Stock Exchange of India Limited.

Corporate Authorization

The official intimation was signed by CS Suresh Bachalakura, Company Secretary of MosChip Technologies Limited, on April 12, 2026. The digital signature authentication confirms the document's authenticity and regulatory compliance for the board meeting notification.