Whirlpool of India share price: Shares of home appliances maker Whirlpool of India (Whirlpool India) tanked 20 per cent to Rs 1,262.15 on the BSE in Thursday’s intra-day trade after the company said today that its US-based parent, Whirlpool Corp intends to reduce its stake in the company to about 20 per cent this year via market sale.
Whirlpool Corporation on Wednesday, January 29, 2025, announced its intention to sell down its ownership interest in Whirlpool India to approximately 20 per cent by mid-to-late 2025, by way of one or more market sales interest in Whirlpool India. It expects to remain the largest shareholder following completion of the anticipated sell-down, the company said in an exchange filing. The company expects net cash proceeds of $550 to $600 million from the anticipated India transaction, it added.
Whirlpool India, headquartered in Gurugram, Haryana, is one of the leading manufacturers and marketers of major home appliances in the country.
As on December 31, 2024, Whirlpool Mauritius, the promoter entity, held 51 per cent stake in Whirlpool India, the shareholding pattern data shows. Whirlpool Mauritius is the wholly-owned subsidiary of Whirlpool Corporation.
On February 20, 2024, Whirlpool Mauritius had executed the sale of 30.4 million equity shares of Whirlpool India via an on-market trade. The transaction reduced Whirlpool Mauritius’s ownership in Whirlpool India from 75 per cent to 51 per cent, and generated gross sales proceeds of approximately $468 million on settlement.
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The stock of Whirlpool India had hit a 52-week low of Rs 1,186.85 on February 27, 2024. Since then, it had more than doubled, or zoomed 106 per cent to hit a 52-week high of Rs 2,450 on October 22, 2024.
Meanwhile, Whirlpool Corporation said it continues to see India as a significant marketplace for growth and an integral part of the company’s growth strategy. The company remains committed to expand the business with new product launches and the recently acquired Elica India business.
“Whirlpool India will remain a relevant part of Whirlpool Corporation's portfolio, and we continue to believe Whirlpool India has a strong long-term trajectory for growth. We intend the anticipated sell-down to result in autonomy for Whirlpool India to adjust to the ever-evolving industry conditions, enabling Whirlpool India to focus on accelerated growth and utilise its well-funded business to invest further in the business," Whirlpool Corporation said in a statement.
The parent company added that sustained brand license and technology agreements, as well as transition commitments will continue to support business operations and the long-term growth of Whirlpool as one of the most trusted brands in India. The parent company believes these actions will deliver value to Whirlpool India’s shareholders.