Whirlpool block deal: Parent entity to sell 7.5% stake at 14% discount, says report

Shares of Whirlpool of India Ltd are in focus on Thursday morning amid reports that the promoter entity, Whirlpool Mauritius Limited, was planning to offload up to 7.5 per cent stake in the company. The estimated size of the deal is estimated at around Rs 965 crore. The floor price is fixed at Rs 1,030, CNBC Awaaz reported, a 14 per cent discount to the prevailing market price.

Whirlpool Corporation had earlier suggested that it plans to reduce its stake in Whirlpool of India to around 20 per cent from 51 per cent. The parent entity had entered into strategic agreements with Whirlpool of India for brand and technology licensing, among others. These agreements along with transaction services agreement, as per analysts, were expected to define the operations of the company for upcoming years.

"We estimate there is no material change in the royalty outgo and hence no substantial impact on Whirlpool’s earnings in the near term on account of this. Whirlpool Corp, Whirlpool India’s parent, expects the stake sale to be finalised by December 2025 and transaction to be completed by H12026. Furthermore, the proceeds
from the stake sale will be utilised to pare down debt of the parent entity," Nuvama had said on November 7.

The near term stock price movement will be dependent on value at which Whirlpool's promoter manages to strike deal for divestment of its 31 per cent holdings, YES Securities noted this month.

The stake sale, comprising approximately 95 lakh shares, would be executed through a block deal, as per CNBC Awaaz report. Whirlpool Mauritius owned 51 per cent stake in the company, as per the latest shareholding data.