Whirlpool promoter likely to sell 24% equity stake through block deals

Total deal size may range between Rs 2,337 crore and Rs 3,739 crore

Whirlpool Mauritius (WML) is expected to sell 30.4 million shares, or 24 per cent equity stake, in Whirlpool of India via block deals on Tuesday, according to reports in news agencies.

Currently, WML holds a 75 per cent stake in the white goods maker.

The floor price for the share sale is pegged at Rs 1,230 per share, 7.6 per cent below the Whirlpool of India stock’s last close of Rs 1,331 on the BSE. The base issue size is expected to be 19 million shares (15 per cent equity), but if demand is strong, WML could sell up to 30.4 million shares. Depending on demand, the deal size could range between Rs 2,337 crore and Rs 3,739 crore.

 

Goldman Sachs is reported to be the sole bookrunner for the deals. Shares of Whirlpool have taken a 2.3 per cent hit this year but are up 2.7 per cent in the past year, underperforming the Nifty50, which has gained 24 per cent over the past year.

Over the past year, the domestic markets have seen several large block trades by promoters. These include a Rs 7,684 crore share sale by Hulst, an affiliate of Baring Private Equity, in Coforge, a Rs 7412 crore stake sale in Adani Power by the promoter group to US-based GQG Partners, and a 3 per cent stake sale in InterGlobe Aviation by the co-founder Gangwal family for Rs 2,802 crore.

In an email response the company said, “In line with Whirlpool Corporation’s announcement in November 2023 to dilute upto 24 per cent stake in Whirlpool India, the market would be updated via a public announcement and through filings as per Indian and US regulations if and when such transaction(s) is executed.”

In the October-December quarter, the consumer durables major’s total revenue from operations stood at Rs 1535.7 crore, up by 17.9 per cent compared to the same quarter last year. Its net profit stood at Rs 29.9 crore, up 12 per cent. Whirlpool of India's earnings before interest, tax, depreciation, and amortisation stood at Rs 62.7 crore, up 42.5 per cent from the previous year.

In its earnings release, Narasimhan Eswar, managing director of Whirlpool of India, said, “We had a strong quarter on revenue and volume growth on the back of our recently launched innovations being fully available in the marketplace, competitive pricing indices compared to a year ago, a significant step up in all executional areas, driving premiumisation across categories and also aided by Diwali seasonality this year.”

He further said: “On the profit front, other than the positive effects of volume growth and mix, we also reaped the benefits of a strong productivity program across all lines of the P&L (profit & loss).”