Whirlpool India share price hits 20% lower circuit as parent plans to sell 20% stake

Stock market today: Shares of mid-cap stock Whirlpool of India plunged 20% to their lower circuit limit in trade Thursday, January 30, after the company informed exchanges that its parent company, Whirlpool Corporation, plans to offload a 20% stake.

Whirlpool Corporation, the ultimate holding company of Whirlpool of India, has announced its intention to pare its stake in the Indian arm by 20% by mid or end of the current calendar year.

"Today, as part of its fourth-quarter earnings release, Whirlpool Corporation announced its intention to sell down its ownership interest in Whirlpool of India Ltd. ("Whirlpool India") to approximately 20% by mid to late 2025, by way of one or more market sales ("Anticipated Sell-Down")," said an exchange filing today.

Whirlpool Corporation, which currently holds a 51% ownership interest in Whirlpool India, expects to remain the largest shareholder following the completion of the anticipated stake sale.

The parent company said Whirlpool India will remain a relevant part of the company's portfolio. It further added that Whirlpool India has a strong long-term trajectory for growth.

"We intend the Anticipated Sell-Down to result in increased autonomy for Whirlpool India to adjust to ever-evolving industry conditions, enabling Whirlpool India to focus on accelerated growth and utilizing its well-funded business to invest further in the business. Sustained brand license and technology agreements, as well as transition commitments, will continue to support business operations and the long-term growth of Whirlpool as one of the most trusted brands in India. We believe these actions will deliver value to Whirlpool India's shareholders," Whirlpool Corporation said.

Share Price Impact

Whirlpool of India, the manufacturer of household appliances, witnessed a 20% decline in its share price to ₹1,262.15 apiece, also its lower price band.

According to the data on the National Stock Exchange (NSE), 2.62 shares of Whirlpool India were traded as of 10.30 am today. There were pending sell orders for 10.84 lakh shares, data further showed.

Whirlpool India, part of the BSE 500 index, has a market capitalisation of ₹16,000 crore.