Whirlpool Block Deal: Promoter Set To Sell Shares Worth Nearly Rs 1,000 Crore
The share sale represents 7.51% of Whirlpool of India's total equity.
US appliances maker Whirlpool Corp. will sell stake in its local arm Whirlpool of India Ltd. for nearly Rs 1,000 crore via large deals on Thursday.
Whirlpool Mauritius Ltd., the promoter entity, will 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 is 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.
"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," a statement had 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.
"In 2025, our clear capital allocation priorities along with the anticipated India transaction will maximize shareholder value and further strengthen our balance sheet," said Jim Peters, chief financial and administrative officer.
Shares of Whirlpool of India closed 0.35% higher at Rs 1,199.60 apiece on Wednesday, ahead of the announcement, compared to 1.2% advance in the benchmark BSE Sensex. The stock has
