Quality Power Electrical Equipments Ltd announces an acquisition

Total consideration: up to Rs 272.34 Crores for acquiring up to 100% of Winwin Speciality Insulators, at up to Rs 141.88 per Winwin share. The consideration comprises approximately Rs 148.50 Crores through a share swap and Rs 123.84 Crores in cash. ^[1]

Trailing valuation multiples: the EGM extract identifies the valuation report dated September 23, 2026, but does not reproduce Winwin’s trailing revenue or EBITDA figures. ^[2] Therefore, the multiples cannot be calculated reliably from the disclosed extract:

• Trailing revenue multiple = Rs 272.34 Crores / Winwin trailing revenue
• Trailing EBITDA multiple = Rs 272.34 Crores / Winwin trailing EBITDA

The Rs 148.50 Crores share-swap value is based on up to 10,17,123 Quality Power shares issued at Rs 1,460 per share; the balance is cash. ^[3]

The proposed QIP seeks to raise up to Rs 700 Crores. However, the final instrument and resulting dilution have not yet been fixed.

• Quantum: Up to Rs 700 Crores through a Qualified Institutions Placement. ^[4]
• Instrument: The approval is broad—equity shares and/or equity-linked securities, including convertible warrants, debentures, convertible preference shares or other securities convertible into equity. Therefore, it is not yet specified whether the issue will comprise equity shares, convertible warrants, or another permitted security. ^[4]
• Dilution: QIP-related post-allotment dilution is not disclosed or calculable at this stage, because the company has not finalized the security type, issue price, number of securities or post-issue shareholding. ^[5]

Separately, the proposed Winwin acquisition share swap involves 10,17,123 equity shares, with the selling shareholders expected to hold 1.30% of Quality Power’s equity post-preferential allotment. ^[6] This represents approximately 1.30 percentage points of dilution for existing shareholders from the swap issue alone, but it is separate from the proposed Rs 700 Crores QIP.

The acquisition’s premium or discount versus Quality Power’s historical segment multiples cannot be established from the disclosed extracts because the historical segment-multiple table from the valuation report is not reproduced.

What is disclosed

For scale only, Winwin’s provisional FY26 revenue was reported at approximately Rs 17.07 Crores ^[8]. Dividing the Rs 272.34 Crores total consideration by that revenue gives an implied revenue multiple of approximately 15.95x. This is a derived transaction consideration-to-revenue ratio, not a valuation multiple explicitly reported in the valuation report.

The comparison remains incomplete because:

• the acquisition figure is total equity consideration, while historical segment multiples may be based on enterprise value;
• Winwin’s revenue figure is provisional and the relevant period and accounting basis may differ from the segment benchmarks;
• no historical Quality Power segment EV/revenue, EV/EBITDA or P/E multiples are disclosed in the cited material.

Implication: it is not evidence-backed to describe Winwin as acquired at a premium or discount to Quality Power’s existing businesses until the valuation report’s segment multiples and definitions are available. The only defensible quantified reference from the disclosed figures is the approximate 15.95x consideration-to-FY26 revenue ratio, subject to the comparability caveats above.