Whirlpool India shares rose 10% on April 29 after a report said that leading private equity firms are eyeing a stake as the American appliance giant looks to reduce its ownership while maintaining a strategic presence in the market.
The Economic Times reported industry sources as saying that Advent International, Bain Capital, TPG, EQT, Carlyle, and KKR have all been approached in relation to the potential sale of a 31 percent stake in Whirlpool of India Ltd. Whirlpool India's US parent plans to retain a 20 percent holding in the subsidiary, which currently generates approximately 85 percent of its Asian revenue.
On April 29, the shares rose as much as 10% before paring some gains to trade 8% higher, at 12:30 pm, at Rs 1,298 apiece. The stock rose nearly 25% in the past month.
Company's financial advisor Goldman Sachs launched the formal sale process earlier this month, as per the report. With the stake sale, the parent company reportedly aims to secure between $550-600 million (Rs 4,684-5,110 crore) in net proceeds from the transaction.
People aware of the proposed sale told ET that the process is in the early stages and many funds have begun engaging with industry advisors to evaluate the opportunity.
In February 2024, Whirlpool made sale of a 24.7 percent stake in the Indian unit for Rs 4,039 crore to institutional investors including Aditya Birla Sunlife Mutual Fund, SBI Mutual Fund, and Societe Generale.
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Despite being one of the first multinational electronics brands to enter India in the late 1980s, Whirlpool has struggled to match the growth of competitors like Samsung, LG, and Haier — all later entrants — as well as domestic brands such as Voltas and Lloyd.
PE control of appliance brands
Several private equity firms have previously invested successfully in India's consumer appliance sector — with Advent International, alongside Temasek, taking control of CG Consumer and subsequently exited profitably through the public markets. They still hold a controlling stake in Eureka Forbes since its acquisition from the financially-troubled SP Group.
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