Supreme Court Vacates Status Quo Order on MosChip's Vayavya Labs Acquisition

MosChip Technologies said the Supreme Court of India has vacated the status quo order dated May 11, 2026 that had restricted proceedings related to its proposed acquisition of Vayavya Labs Private Limited. The ScanX report said the court's decision followed the deposit of an additional security amount of ₹200 crore by the judgment debtor on October 12, 2026.

How the Supreme Court Order Was Lifted

The deposit was made in compliance with directions contained in the Supreme Court's judgment pronounced on September 1, 2026. MosChip clarified that it is not connected to the underlying dispute between the parties, and that it had filed an Impleadment Application before the Supreme Court solely to protect its interests in the proposed acquisition transaction.

The vacating of the status quo removes the interim legal restraint that had been in place since May 2026. MosChip stated that there is no financial, operational or business impact on the company arising from these developments. The resolution of this specific legal hurdle allows the broader acquisition process to proceed without the prior judicial stay affecting its interests.

The disclosure was made to BSE and NSE under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, updating earlier intimations from May and September 2026.

What akta.pro Records Show on the Vayavya Deal

According to akta.pro company records, MosChip Technologies acquired a 73% controlling stake in Vayavya Labs for Rs 245.49 crore (approximately $26.3 million) in a 50% cash / 50% share-swap deal, with the remaining 27% to be acquired after March 2028 based on performance metrics. The same records show Vayavya Labs recorded a turnover of Rs 83 crore in FY26 and serves eight of the top ten global semiconductor companies.

Vayavya Labs' Recent Partnership Activity

Vayavya Labs announced its role as a virtual platform partner to Tenstorrent in October 2026, delivering SystemC/TLM virtual platforms for Tenstorrent's security and system management IP, CXOToday.com reported. In May 2026, Vayavya Labs HR told People Matters that India's deep-tech sector, including semiconductor and automotive software companies, continues hiring despite broader tech layoffs, because specialized engineering roles tied to hardware cannot be easily scaled or replaced by AI.

What Comes Next for the Acquisition

MosChip said the vacatur allows the acquisition to proceed without financial or operational impact. The remaining 27% stake is to be acquired after March 2028 based on performance metrics, according to akta.pro company records.