Whirlpool of India Ltd’s shares took a hit 20% lower circuit following an announcement by its parent company, Whirlpool Corporation, to sell down its stake from the current 51% to around 20% by mid-to-late 2025. The reduction will be carried out through one or more market sales, according to Whirlpool Corporation’s fourth-quarter earnings release.
As of 9:15 am the shares were trading 20% lower at ₹1,260.80 on NSE.
Despite the anticipated sell-off, Whirlpool Corporation reassured investors that it will remain the largest shareholder in Whirlpool of India and continue supporting its operations. The move is seen as a strategic decision to provide greater autonomy to the Indian subsidiary, enabling it to adapt to changing industry dynamics and pursue accelerated growth.
“We continue to believe Whirlpool India has a strong long-term growth trajectory. The anticipated sell-down is expected to provide increased autonomy for Whirlpool India, allowing it to reinvest in expansion while leveraging its well-funded operations,” Whirlpool Corporation stated.
Additionally, the parent company emphasized that it would maintain its brand licensing and technology agreements with Whirlpool India, ensuring business continuity and maintaining its position as a trusted brand in the Indian market.
This move comes a year after Whirlpool’s previous sale of 24% of its stake on February 20, 2024, raising about $468 million through its subsidiary in Mauritius. In that transaction, Whirlpool reduced its holding from 75% to 51%, with major buyers like SBI Mutual Fund, Societe Generale, and Nippon India Mutual Fund acquiring stakes at ₹1,277 per share through bulk deals on the BSE.
This strategic realignment comes as part of Whirlpool Corporation’s broader investment approach, giving its Indian operations more independence while keeping the necessary backing to foster long-term growth. Investors and stakeholders will closely monitor the sell-down process, which is expected to conclude by 2025.
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