Whirlpool To Pare Stake In India Unit To 20% This Year, Eyes $600 Million Raise

US appliances maker Whirlpool Corp. plans to reduce ownership in its India unit to nearly 20% by mid to late 2025 through one or more share sale, the company announced on Thursday.

The parent currently holds 51% stake in Whirlpool of India Ltd. 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.

"Whirlpool India will remain a relevant part of Whirlpool Corp's portfolio and we continue to believe Whirlpool India has a strong long-term trajectory for growth," an exchange filing by the firm said.

"We intend the anticipated sell down to result in increased autonomy for Whirlpool India to adjust to ever-evolving industry conditions, enabling Whirlpool India to focus on accelerated growth," it further said.

Sustained brand licence and technology agreements as well as transition commitments will continue to support business operations and the long term growth of Whirlpool, the statement added.

"We are proud of the actions we took to strengthen our balance sheet, paying down $500 million in debt and driving significant working capital efficiency," said Jim Peters, chief financial and administrative officer.

"In 2025, our clear capital allocation priorities along with the anticipated India transaction will maximize shareholder value and further strengthen our balance sheet," he added.

In the July-December 2024 period, Whirlpool Corp. reported $0.4 billion in net sales in India, earnings before interest and taxes of $3 million and margin of 0.7%, as per quarterly financial statements.

Shares of Whirlpool of India closed 0.1% higher at Rs 1,577.65 apiece on Wednesday, ahead of the announcement, compared to 0.8% advance in the benchmark BSE Sensex.

The company will report its December quarter results on Feb. 4.