Whirlpool India Shares Plunge 20% As Parent Plans To Reduce Stake In 2025; Details – News18

Last Updated:January 30, 2025, 11:28 IST

Currently, Whirlpool Corporation holds a 51% stake in Whirlpool India and plans to remain the largest shareholder after completing the sell-down.

Whirlpool India Shares Fall: Shares of Whirlpool India plummeted 20%, hitting the lower circuit limit at Rs 1,262.15 in early trading on Thursday after the company announced that its parent, Whirlpool Corporation, plans to sell a 20% stake in the company.

In its fourth-quarter earnings release, Whirlpool Corporation disclosed its intention to reduce its stake in Whirlpool India Ltd. to approximately 20% by mid to late 2025. The stake sale will be carried out through one or more market transactions.

“Following Regulation 30 and Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI Circular No. SEBI/HO/CFD/CFD-PoD1/P/CIR/2023/123 dated July 13, 2023, we inform the Stock Exchange about the receipt of communication from Whirlpool Corporation, the ultimate holding company,” said the company in a statement. The details of the anticipated sell-down were disclosed by Whirlpool Corporation as part of its earnings release.

Currently, Whirlpool Corporation holds a 51% stake in Whirlpool India and plans to remain the largest shareholder after completing the sell-down.

Despite the reduced stake, Whirlpool Corporation emphasized that Whirlpool India would continue to be a key part of its portfolio. The company expressed confidence in Whirlpool India’s long-term growth prospects and believes this strategic move will grant the Indian subsidiary more autonomy to adapt to the evolving industry landscape.

This enhanced autonomy is expected to accelerate Whirlpool India’s growth, allowing for further investments and leveraging its strong financial position. Whirlpool Corporation also assured that brand licensing and technology agreements, along with transition support, will remain intact to help Whirlpool India maintain its operations and long-term growth as a trusted brand in India.

Whirlpool Corporation added that it believes these actions will ultimately create value for Whirlpool India’s shareholders.