Whirlpool Share Price Plunges Over 11% As Promoter Offloads Rs 1,000-Crore Stake

Share price of appliance maker Whirlpool of India Ltd. took a hit in early trade on Thursday after the execution of a block deal worth Rs 1,000 crore, as per Bloomberg data.

Whirlpool Corp. offloaded 15 million shares of the company through large deals on Thursday. Whirlpool Mauritius Ltd., the promoter entity, was expected to offer up to 9.5 million shares at a floor price of Rs 1,030 per share for the block deal, according to the termsheet. The deal was priced at a 14.2% discount to last closing price on the NSE.

The share sale represents 7.51% of Whirlpool of India's total equity. The rest of the shareholding will be locked-in for 90 days.

Earlier this year, Whirlpool Corp. had announced plans to reduce ownership in its India unit to nearly 20% by mid to late 2025 through one or more share sale.

The parent currently holds 51% stake in Whirlpool of India and expects to remain the largest shareholder following completion of stake sale. It expects net cash proceeds of $550 to $600 million from the anticipated transaction.

The scrip fell as much as 11.63% to Rs 1,061.20 apiece, paring losses to trade 10.89% lower at Rs 1,070.10 apiece, as of 09:27 a.m. This compares to a 0.24% advance in the NSE Nifty 50 Index.

Whirlpool has fallen 41.76% on a year-to-date basis, and 40.45% in the last 12 months. The relative strength index was at 27.04.

Out of 13 analysts tracking the company, eight maintain a 'buy' rating, four recommend a 'hold,' and one suggests 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 35.2%.