Around 3.2 crore shares of Whirlpool of India, making up for 24.7 percent stake worth Rs 4,039 crore, changed hands in a block deal in early trade on February 20.
Whirlpool Mauritius Ltd, a promoter entity of Whirlpool of India, is the likely seller as the promoter planned to sell as much as 24 percent of the local unit through a block deal for $451 million, according to multiple industry executives familiar with the deal terms.
At 9.18am, the company’s shares were quoting Rs 1,293.65 on the NSE, lower by 2.8 percent compared to the previous session’s closing price.
"The base size of the deal is $282 million, which represents 15 percent of outstanding share capital and the upsise option of the deal is up to $169 million, which represents 9 percent of outstanding share capital," said one of the people cited above.
A second person told Moneycontrol that the floor price for the proposed block deal is Rs 1,230 per share, a 7.6 percent discount to the last trading price of Rs 1,331.20.
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The promoter group, which currently owns 75 percent of the home appliance maker, had earlier indicated that it would reduce its stake in the company to reduce debt levels.
On November 30, 2023, Whirlpool Corp said it would sell up to 24 percent of its ownership interest in Whirlpool of India to reduce debt levels. Whirlpool Corp said that the parent intends to retain a majority interest in Whirlpool of India following the completion of the planned stake sale.
"The company expects to use transaction proceeds to reduce debt levels, which will enhance balance sheet flexibility. Proceeds expected to be used for debt repayment are incremental to the $500 million term loan repayment that the company previously disclosed it expects to pay in the fourth quarter of 2023," the disclosure added.
"The company continues to see India as a significant marketplace for growth and an integral part of the company’s growth strategy.”
Over the past six months, the company’s shares have fallen over 16 percent. In comparison, the benchmark index Nifty 50 has gained around 14 percent during the same time period.
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