Whirlpool India Block Deal: Mutual Funds Mop Up Shares As Promoter Pares Stake

Mutual funds were the main buyers of Whirlpool of India Ltd. shares after its US parent offloaded equity via large deals on Thursday.

Whirlpool Maurities Ltd., the promoter entity, sold more than 1.4 crore shares or 11.23% equity at Rs 1,044.97 apiece, according to bulk deal data on the BSE. The aggregate sell value amounts to Rs 1,490 crore.

The floor price for the deal was Rs 1,030 per share, according to Wednesday's termsheet.

Kotak Mahindra Mutual Fund acquired 11 lakh shares for Rs 120 crore, HDFC Mutual Fund acquired 10 lakh shares for Rs 105 crore, and Franklin Templeton Mutual Fund purchased 8.6 lakh shares for Rs 89 crore. ICICI Prudential Life Insurance Co. was another prominent domestic investor.

US-based hedge fund management firm East Bridge Capital and French investment major Societe Generale also invested in Whirlpool India stock.

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.

Whirlpool India shares settled 11.3% lower at Rs 1,063.85 on the BSE, compared to a 0.1% advance in the benchmark Sensex. The stock has fallen 41% so far this year.

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%.

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