Whirlpool India shares decline over 3% amid large block deal worth Rs 4,039 crore

On November 30, 2023, Whirlpool Corp said it would sell up to 24% of its ownership interest in Whirlpool of India to reduce debt levels.

Shares of Whirlpool India slip over 3% in trade on the back of a large block deal of 24.9% equity or 3.2 crore shares worth Rs 4,039 crore took place in the morning trade. Reports suggested that parent company (Whirlpool Mauritius) was expected to sell nearly 24% equity via the block deal today. This comes in 2 months after the management of the company had indicated about their plans to offload the stake to reduce debt further. 

To be precise, on November 30, 2023, Whirlpool Corp said it would sell up to 24% of its ownership interest in Whirlpool of India to reduce debt levels. Whirlpool Corp said that the parent intends to retain a majority interest in Whirlpool of India following the completion of the planned stake sale. “The company expects to use transaction proceeds to reduce debt levels, which will enhance balance sheet flexibility. Proceeds expected to be used for debt repayment are incremental to the $500 million term loan repayment that the company previously disclosed it expects to pay in the fourth quarter of 2023,” the company disclosed.

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Whirlpool India shares today made an intraday low of Rs 1,268 against its previous close of Rs 1,331 on the NSE. As of 9:50 AM, shares of Whirlpool India were down 3.09% at Rs 1,290 on the NSE.