Whirlpool Mauritius sold over 3 crore shares of its Indian subsidiary, Whirlpool of India, at a price of ₹1,277.02 for an amount worth ₹3,831 crore, bulk deals data on the BSE showed.

The shares were bought by a clutch of domestic and overseas funds, such as Aditya Birla Sunlife Mutual Fund, DSP MF, Nippon India MF, SBI MF and Société Generale ODI. The transaction price was slightly higher than the floor price of ₹1,230 a share.

Prior to this transaction, the parent entity Whirlpool Corporation owned 75 per cent in the Indian unit through Whirlpool Mauritius. Post the stake sale it has now reduced to 51 per cent and it is likely to remain at this level.

To reduce stake

In its 2023 fourth quarter results release, the company had mentioned its intent to sell up to 24 per cent stake in Whirlpool of India but retaining majority stake. The proceeds of the stake sale are expected to reduce its debt, which was also spelt out in the release. It said that it expected $500 million debt reduction in 2024 through free cash flows and India stake sale.

Whirlpool Corp has been struggling with sales as pressure on consumer discretionary spending has had a negative impact on and product mix. It had said that it was facing continued demand weakness across key countries.

In India, the home appliances maker saw growth in the December quarter after five quarters of decline. This was aided by festival season sales and price cuts. The company has forecast high, single-digit revenue growth and margins in the medium to long term along with gains in market share.

Its shares have fallen this year from last year’s levels when they were trading above ₹1,700 a share.

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