Block deal: Whirlpool shares tumble 13% amid high turnover; key details

Shares of Whirlpool of India Ltd tumbled 13 per cent in Thursday's trade on high turnover, as a promoter entity, Whirlpool Mauritius Limited, likely sold up to 7.5 per cent stake in the company via block deal. A media report had earlier suggested such a deal with an estimated size of around Rs 965 crore. The floor price was believed to be set at Rs 1,030, which was at a 14 per cent discount to the prevailing market price. 

Whirlpool shares fell 13.22 per cent to hit a low of Rs 1,041 on BSE. The stock witnessed a turnover of Rs 1,659.05 crore on BSE, with 1.58 crore shares changing hands by 9.23 am against a two-week average of 11,000 shares. 
The parent company had entered into strategic agreements with Whirlpool of India covering brand and technology licensing, among other areas. Analysts noted that these agreements, along with the transaction services arrangement, were expected to shape the company’s operations in the coming years.

Nuvama commented on November 7 that they anticipate no significant change in royalty payments, and therefore, Whirlpool’s earnings are unlikely to be materially affected in the near term. Whirlpool Corp, the parent of Whirlpool India, expects the stake sale to be finalised by December 2025, with the transaction closing in the first half of FY26. Proceeds from the sale are intended to reduce the parent company’s debt.

Whirlpool Corporation had earlier indicated plans to reduce its stake in Whirlpool of India from 51 per cent to around 20 per cent. The parent company had entered into strategic agreements with Whirlpool of India covering brand and technology licensing, among other areas. Analysts noted that these agreements, along with the transaction services arrangement, are expected to guide the company’s operations in the coming years.

Nuvama said on November 7 that it estimated no material change in royalty outgo and, therefore, no significant near-term impact on Whirlpool India’s earnings. Whirlpool Corp, the parent, expects the stake sale to be concluded by December 2025, with the transaction completed in H1 FY26. The proceeds from the sale are intended to reduce the parent company’s debt.