Whirlpool Mauritius sells 24% stake worth Rs 3,880 cr in Whirpool of India

Whirlpool of India's promoter Whirlpool Mauritius sold a 24 per cent equity stake worth Rs 3,880 crore in the company on February 20, according to an exchange notification.

The company said that the parent company Whirlpool Corporation has sold 30.4 million shares through the open market for $468 million. Following the sale, the parent firm’s holding has come down to 51% from 75%. The company said it will use the transaction proceeds to settle its debt.

As per the notification, Aditya Birla Sunlife Mutual Fund, DSP Mutual Fund, ICICI Prudential Mutual Fund, Nippon India Mutual Fund, SBI Mutual Fund, Societe Generale ODI bought the shares.

In its 2023 Q4 results, the company had mentioned its intent to sell up to 24 per cent stake in Whirlpool of India but retaining the majority stake.

The proceeds of the stake sale are expected to reduce its debt, which was also spelt out in the release. It said that it expected $500 million debt reduction in 2024 through free cash flows and India stake sale.

\Shares of Whirlpool of India stock slumped 3.24 per cent to Rs 1,287.7 on the BSE. The shares declined by 19.21 per cent in the last 6 months.