Whirlpool India Witnesses 8% Drop in Shares Following Parent Company's Decision to Sell Up to 24% Stake

Shares of Whirlpool of India witnessed a decline of over 8 percent following the announcement by the parent company, Whirlpool Corporation, regarding its intention to reduce its stake in Whirlpool of India Limited (Whirlpool India) by up to 24 percent.

As of now, Whirlpool of India shares have fallen by 8.83 percent, trading at Rs 1429 on the Bombay Stock Exchange (BSE).

Whirlpool Corporation revealed its plans on Thursday, outlining its intention to engage in one or more transactions to sell a stake of up to 24 percent in Whirlpool India in 2024. Currently, Whirlpool holds a 75 percent ownership interest in Whirlpool India through a wholly-owned subsidiary. The corporation aims to maintain a majority interest in Whirlpool India after the completion of the intended transaction or transactions.

The proceeds generated from these transactions are expected to be utilized for reducing debt levels, contributing to improved balance sheet flexibility. Notably, these funds for debt repayment are separate from the $500 million term loan repayment anticipated by the company in the fourth quarter of 2023.

Whirlpool Corporation affirmed its commitment to viewing India as a crucial market for growth, emphasizing its integral role in the company's overall growth strategy. Despite the stake reduction announcement, Whirlpool highlighted its dedication to expanding business in India through initiatives such as new product launches and the recent acquisition of Elica India. The corporation reassured that this development is not anticipated to impact the previously issued full-year guidance.

(With Agency Inputs)