Whirlpool India shares hit 20% lower circuit as parent intends to trim stake in firm to 20% from 51%; check details

The company, in its filing to stock exchanges Thursday, said, "Today, as part of its fourth-quarter earnings release, Whirlpool Corporation announced its intention to sell down its ownership interest in Whirlpool of India Ltd. ("Whirlpool India") to approximately 20% by mid to late 2025, by way of one or more market sales ("Anticipated Sell-Down"). Whirlpool Corporation, which currently holds a 51% ownership interest in Whirlpool India, expects to remain the largest shareholder following completion of the anticipated sell-down."

The filing added that Whirlpool India will remain a relevant part of Whirlpool Corporation's portfolio, and the company continues to believe Whirlpool India has a strong long-term trajectory for growth.

"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 and utilizing its well-funded business to invest further in the business. Sustained brand license and technology agreements, as well as transition commitments, will continue to support business operations and the long-term growth of Whirlpool as one of the most trusted brands in India. We believe these actions will deliver value to Whirlpool India's shareholders. We look forward to a continued, mutually beneficial relationship."

Whirlpool Corporation, in its fourth-quarter earnings results, said it expects net cash proceeds of $550 million to $600 million from the above-anticipated India transaction and sees the deal closing by mid to late 2025.

"In 2025, our clear capital allocation priorities along with the anticipated India transaction will maximize shareholder value and further strengthen our balance sheet," Reuters reported, quoting Whirlpool Corp. as saying.

The parent company currently has a 51% stake in its Indian unit.

Last year, Whirlpool Corp sold a 24% stake in the Indian unit for about $468 million in a bid to reduce debt.

Whirlpool India Q2 Results

The consumer durables maker reported a 40.13% rise in its consolidated net profit to ₹53.53 crore in the September 2024 quarter.

The company posted a net profit of ₹38.20 crore during the July-September quarter of the previous fiscal year, Whirlpool of India, a subsidiary of Whirlpool Corporation, said in a regulatory filing.

Its revenue from operations was 12.58% higher at ₹1,713 crore during the quarter under review. The same stood at ₹1,521.56 crore a year ago.

Whirlpool India's total expenses were ₹1,688.95 crore in the July-September period, up 12.35%.

(With PTI inputs)