Whirlpool of India stock hits 8-year low, tanks 31% in 2 days; here's why

Shares of Whirlpool of India (Whirlpool) hit a near eight-year low at Rs 1,094 as they slipped 13 per cent on the BSE in Friday’s intra-day trade amid heavy volumes. In the past two days, the stock of this household appliances company has tanked 31 per cent after its parent, Whirlpool Corporation said it intends to bring down its stake in Whirlpool India to around 20 per cent from 51 per cent by late 2025. 

 

The stock was trading at its lowest level since March 2017. At 02:16 PM; Whirlpool was trading 10 per cent lower at Rs 1,140.80, as compared to 0.63 per cent rise in the BSE Sensex. The average trading volumes at the counter jumped multiple-fold with a combined 3.3 million equity shares changing hands on the NSE and BSE.

 

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.

 

As on December 31, 2024, Whirlpool Mauritius, the promoter entity, held 51 per cent stake in Whirlpool, 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 from 75 per cent to 51 per cent, and generated gross sales proceeds of approximately $468 million on settlement.  ALSO READ: Ola Electric soars 14% after launching 8 new Gen 3 variants of S1 portfolio

 

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 will remain a relevant part of Whirlpool Corporation's portfolio, and we continue to believe Whirlpool 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.

 

Meanwhile, on December 23, 2024, Whirlpool and PG Electroplast Limited (PGEL) signed a definitive agreement, for contract manufacturing of select models of Whirlpool branded semi-automatic washing machines. Under the arrangement, PGEL will manufacture some of the stock keeping units (SKUs) for Whirlpool at its factory at Roorkee. PGEL is already an existing supplier of Whirlpool branded Air Conditioners and both companies will continue to evaluate the potential expansion opportunities.

 

The board of directors of Whirlpool are scheduled to meet on Tuesday, 04 February, 2025 to consider and approve the un-audited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024. 

 

In the July to September quarter (Q2FY25), Whirlpool reported 40.1 per cent year-on-year (YoY) growth in profit after tax at Rs 53.5 crore, on back of 12.6 per cent YoY rise in revenue from operations at Rs 1,713 crore.

 

Revenue growth was driven by strong volume share growth in Refrigerators and Washers compared to last year as well as more premium product mix driving value growth. Profit improvement was driven by volume growth, cost productivity actions leading to better margins and improved mix of premium and high margin portfolio, the management said.