Whirlpool of India Ltd. saw its share price fall to a nearly 10-month low on Thursday after parent Whirlpool Corp. revealed stake sale plans. The appliance maker's share price was locked in 20% lower circuit in early trade on Thursday.
Whirlpool Corp. will reduce approximately 20% stake by mid to late 2025 in one or more tranches, generating net cash proceeds between $550 million and $600 million. Currently, it holds a 51% stake in Whirlpool of India.
The US-based parent company said it will remain the largest shareholder after the stake sale. The move is aimed at giving the Indian unit more autonomy to adapt to evolving market conditions, it said.
Whirlpool Corp. further highlighted that it would continue to support the operations of Whirlpool India through sustained brand licensing, technology agreements, and transition commitments, ensuring long-term growth.
Whirlpool of India shares fell as much as 20% to Rs 1,260.80 apiece. It pared losses to trade at the same level as of 09:38 a.m. This compares to a 0.17% advance in the NSE Nifty 50.
It has fallen 3.69% in the last 12 months. Total traded volume so far in the day stood at 55 times its 30-day average. The relative strength index was at 18, indicating that the stock is oversold.
Out of 13 analysts tracking the company, six maintain a 'buy' rating, four recommend a 'hold,' and three suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 65.1%.
Analyst Sees Whirlpool India Stock Under Pressure Due To Promotor Selling | Watch
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