Whirlpool Block Deal: Over 24% equity worth ₹4,039 crore changes hands

As many as 3.2 crore shares, or 24.7% equity of Whirlpool of India, worth ₹4,039 crore exchanged hands at an average of ₹1,280 per share on Tuesday, February 20.

SBI Mutual Fund, Societe Generale and Nippon India Mutual Fund were among the six buyers who picked up a stake in Whirlpool of India, according to bulk deal data from the BSE.

On Monday, February 19, CNBC-TV18 had reported, citing sources, that Whirlpool Corporation was looking at selling 24% equity via a block deal in Whirlpool of India. The total size of the Whirlpool block deal is likely to be $450 million, sources close to the development said. A floor price of ₹1,230 per share is being proposed for this potential block deal, constituting a discount of 7.5% when compared to the current market price (CMP), sources in the know told CNBC-TV18.

Whirlpool of India's promoter Whirlpool Corporation holds 75% stake in the former. Even with the block deal, it still maintains a majority interest in its Indian wholly-owned subsidiary.

Last year, it was reported that Whirlpool Corporation was planning to sell its stake in the Indian arm to raise funds to reduce debt level.

Whirlpool of India Ltd reported a 12% growth in its consolidated net profit at ₹29.93 crore for the third quarter ended December 2023, helped by volume growth.

The company had posted a net profit of ₹26.71 crore during the October-December quarter of the previous fiscal, Whirlpool of India, a subsidiary of Whirlpool Corporation said.

Its revenue from operations was up 17.9% to ₹1,535.65 crore during the quarter under review. It was at ₹1,302.46 crore in the corresponding period of the previous fiscal.

Whirlpool of India shares have been in the red for the last four days, down 2.8% at ₹1,294 apiece at 9.20 AM on Tuesday, February 20. The stock has been in the red for eight out of the last nine trade sessions. It has fallen 18.95% in the last six months.