Whirlpool India shares soar 8% on strategic licensing agreements; details

The upward movement in Whirlpool of India's share price followed the company's announcement that it has executed several key agreements after receiving approval from its audit committee and board

Shares of household appliances maker Whirlpool of India were in high demand on the bourses on Friday, October 17, after the company announced the execution of several key documents. The company’s share price climbed 8.41 per cent to hit an intraday high of ₹1,342 per share on the NSE. 

 

Whirlpool of India continued to see strong investor interest. As of 10:46 AM on Friday, the stock was trading at ₹1,328.90, up 7.36 per cent from its previous close of ₹1,237.80 per share on the NSE. During the trading session, a total of nearly 2.21 million equity shares of Whirlpool of India, worth ₹265.50 crore, were exchanged on the BSE and NSE. The company’s market capitalisation stood at ₹16,842 crore on the NSE.

 

 

The upward movement in Whirlpool of India’s share price followed the company’s announcement that it had executed several key agreements after receiving approval from its audit committee and board of directors. These include a Brand License Agreement (BLA) with Whirlpool Properties, Inc.; a Technology License Agreement (TLA) with Whirlpool Corporation; a Services Agreement with Whirlpool Asia LLP; a Transitional Services Agreement (TSA) with Whirlpool Corporation; and a Deed of Assignment of Intellectual Property (IP Assignment Deed) with Whirlpool Corporation, along with accompanying confirmatory assignment deeds, according to an exchange filing submitted by the company.

 

The company said that these agreements have been entered into with the intent to promote continued growth and innovation, along with the requisite support from Whirlpool Corporation. The rates negotiated in the agreements are at market value and are not dissimilar to existing rates.

 

According to the exchange filing, the BLA secures a long-term exclusive brand license for the company from Whirlpool Properties, Inc., granting rights to use the ‘Whirlpool’ brand and name in existing and new segments, as detailed in Annexure 1. The TLA secures a technology license for the company from Whirlpool Corporation, granting exclusive access to certain technical know-how and licensed IP for various categories of major domestic appliances, as outlined in Annexure 2.

 

The TSA aims to ensure a gradual and seamless transition and disentanglement where required, particularly concerning services provided by Whirlpool Corporation to the company and vice versa. The Services Agreement, with a term extending up to March 31, 2029, will replace the existing annual agreement between the company and Whirlpool Corporation. Additionally, the Services Agreement provides for a pre-agreed minimum service charge receivable by the company for each of the financial years during its term, according to the exchange filing.