Whirlpool plunges 20% on US parent’s plan to slash stake

MUMBAI: Shares of Whirlpool India tanked 20% on Thursday to hit the lower circuit after its US parent Whirlpool Corporation said that it intends to reduce its stake in the Indian entity by more than half to about 20% this year by way of market sale.
Whirlpool Corporation holds a 51% stake in the Indian company. The US company expects to generate net cash proceeds of $550-600 million through the stake sale estimated to close by mid to late 2025, it said in its earnings statement on Thursday. “In 2025, our clear capital allocation priorities along with the anticipated India transaction will maximise shareholder value and further strengthen our balance sheet,” said chief financial and administrative officer Jim Peters.
Shares of Whirlpool India ended at Rs 1,262 apiece on the BSE on Thursday. The US firm said that the stake sale will result in increased autonomy for Whirlpool India to adjust to evolving industry conditions, enabling the local unit to focus on accelerated growth and utilise its well-funded business to invest further in operations.
The stake sale also comes as Whirlpool Corporation prepares for $700 million of debt pay down in the current year. Last year, the company had sold 24% stake in its Indian arm for about $468 million, paring its ownership to 51% from 75%.