Whirlpool dips 4%, nears 52-wk low as promoter likely sells 24% stake in co

At 09:15 am; as many as 30.82 million equity shares, representing 24.33 per cent of total equity of Whirlpool of India, changed hands on the BSE, exchange data shows

Shares of Whirlpool of India dipped 4 per cent on BSE to Rs 1,271 in Tuesday’s intra-day trade after a little over 24 per cent of its equity changed hands. The stock was trading close to its 52-week low of Rs 1,256.60 touched on February 23, 2023.

At 09:15 am; as many as 30.82 million equity shares, representing 24.33 per cent of total equity of Whirlpool of India, changed hands on the BSE, the exchange data shows. The names of the buyers and sellers were not ascertained immediately.

According to media reports, the company's promoter Whirlpool Mauritius, which holds 75 per cent stake in the Indian arm, was expected to sell 30.4 million shares, or 24 per cent equity stake in Whirlpool India via block deals at Rs 1,230 per share today.

At 10:22 am; the stock was trading 3 per cent lower at Rs 1,296.05 as compared to a 0.11 per cent rise in the S&P BSE Sensex.

On November 30, 2023, Whirlpool Corp had announced its intention to enter into one or more transactions to sell up to 24 per cent of its ownership interest in Whirlpool of India in 2024.

The company intended to retain a majority interest in Whirlpool India following completion of such transaction, it had said.

Whirlpool Corporation further said it expects to use transaction proceeds to reduce debt levels, which will enhance balance sheet flexibility.

Proceeds expected to be used for debt repayment are incremental to the $500 million term loan repayment that the company previously disclosed it expects to pay in the fourth quarter of 2023.

The company continues to see India as a significant marketplace for growth and an integral part of its growth strategy. It remains committed to expand the business with new product launches and the recently acquired Elica India business. 

In the October-December quarter, the Whirlpool India's total revenue from operations stood at Rs 1,535.7 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, while earnings before interest, tax, depreciation, and amortisation stood at Rs 62.7 crore, up 42.5 per cent from the previous year.