Whirlpool Mauritius Sells 11.23% Stake in Whirlpool of India for Rs 1,489 Crore

Whirlpool Mauritius, a promoter of Whirlpool of India Ltd, has sold an 11.23% stake in the company for Rs 1,489 crore through an open market transaction. This move follows Whirlpool Corporation's earlier announcement to reduce its stake in the Indian subsidiary to around 20% by mid to late 2025.

Stake Reduction Strategy

In January, Whirlpool Corporation revealed its plan to decrease its holding in Whirlpool of India Ltd to approximately 20% by mid to late 2025. This strategy was reiterated during their fourth-quarter earnings release. James Peters, Executive Vice President and Chief Financial Officer of Whirlpool Corporation, stated that the sell-down would occur through one or more market sales.

The recent transaction saw Whirlpool Mauritius offload over 1.42 crore shares, equating to an 11.23% stake in the Indian arm. These shares were sold at an average price of Rs 1,044.97 each, resulting in a total deal value of Rs 1,489.60 crore. Consequently, Whirlpool Mauritius's holding in the Indian entity has decreased from 51% to 39.77%.

Investor Interest

Several institutional investors acquired a total of 55.90 lakh shares or a 4.41% stake in Whirlpool of India Ltd. HDFC Mutual Fund, Kotak Mahindra MF, Franklin Templeton MF, ICICI Prudential Life Insurance Company, Societe Generale from Paris, and hedge fund East Bridge Capital were among the buyers. These shares were purchased at an average price of Rs 1,041 each, amounting to a combined transaction value of Rs 581.99 crore.

Despite these transactions, details about other buyers remain undisclosed on the exchange. Following the sale, Whirlpool of India's stock fell by 11.32%, closing at Rs 1,063.85 per share on the BSE.

Future Outlook

In February 2024, Whirlpool Corporation had already reduced its stake by 24% in a block deal worth approximately USD 468 million. Despite these reductions, James Peters emphasised that "Whirlpool India will remain a relevant part of Whirlpool Corporation's portfolio." He also expressed confidence in the long-term growth potential of Whirlpool India.

Whirlpool of India is a prominent player in the home appliances sector with manufacturing facilities located in Faridabad, Puducherry, and Pune.

With inputs from PTI