Foreign promoter likely to sell 24% stake in Whirlpool of India via block deals: Report

MUMBAI: Whirlpool of India’s foreign promoter, Whirlpool Corporation, is looking to sell up to 24% stake in the company through block deals in a deal transaction worth USD 450 million, according to news reports.

The floor price for sale has been set at Rs 1,230 a share, which is at a discount of nearly 8% to the current market price of the stock. On Monday, Whirlpool shares closed almost flat on the BSE at Rs 1,332.

According to reports, the base size of the deal could be 15% with a greenshoe option to sell 9% more if demand looks strong.

Goldman Sachs is advising the American promoter on the stake sale

As of December end, Whirlpool Corporation, through its subsidiary Whirlpool Mauritius, held a 75% stake in the consumer durable goods manufacturer.

In January, Whirlpool said that it intended to sell up to 24% stake in the Indian unit while retaining majority interest. The share sale is part of the American multinational's plan to deleverage its balance sheet.

“The commitment is on improving debt through strong free cash flow and India share sale,” it said last month.

Whirlpool expects to reduce debt by over USD 1 billion in 2024 versus 2022.

Whirlpool shares have been a major underperformer in the last three months, giving negative returns of over 16%. Last year, the stock gave a moderate 3.5% return.

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