Whirlpool of India shares crashed 3 percent on December 1 as the promoter Whirlpool Corporation is set to divest 24 percent stake in the Indian subsidiary.
Whirlpool currently maintains a 75 percent ownership in Whirlpool India, and intends on retaining a major interest in the company following the completion of its transactions. Whirlpool will utilise the proceeds from the sale to reduce debt levels, which will enhance balance sheet flexibility, per the company.
As of 9.32 am, shares of Whirlpool India were quoting Rs 1,525 per share on the NSE, lower by 2.94 percent from the previous session’s closing price.
In a regulatory filing, Whirlpool said, “Proceeds expected to be used for debt repayment are incremental to the $500 million term loan repayment that the [Whirlpool] previously disclosed it expects to pay in the fourth quarter of 2023”
India is still seen as a marketplace for significant growth and is a key player in Whirlpool’s growth strategy. Therefore, this announcement is not likely to impact the previously issued full-year guidance.
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Whirlpool of India stock has recorded a growth of 10.15 percent over the last six months. In comparison, the benchmark Nifty 50 has risen 8.9 percent during the same time period.
FIIs and DIIs have holdings of 3.5 percent and 13 percent in the company respectively. The public has a holding of 8.6 percent.
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