Whirlpool Shares Hit 20% Lower Circuit After Parent Company Announced Stake Sale

On January 30, 2025, Whirlpool shares fell sharply, hitting the lower circuit limit of 20%, dropping to ₹1,262.15 after opening at ₹1,273.95. This significant decline in Whirlpool shares came following an announcement by Whirlpool Corporation, the parent company of Whirlpool of India Ltd., that it plans to reduce its ownership stake in the Indian subsidiary from the current 51% to as low as 20% by mid-to-late 2025.

Parent Company’s Plans to Sell Down Stake

Whirlpool Corporation has stated that it expects to remain the largest shareholder of Whirlpool India after the anticipated stake reduction. This move is part of the company’s ongoing strategy to adjust its investment in the Indian market.

This announcement came alongside Whirlpool Corporation’s quarterly earnings release, nearly one year after it sold a 24% stake in Whirlpool India on February 20, 2024. The 24% stake was valued at ₹4,039 crore, with shares exchanging hands at an average price of ₹1,280 per share. With the current 20% drop, Whirlpool India shares are now trading below this level.

Previous Stake Sale and Stock Performance

Whirlpool Corporation’s decision to sell a portion of its stake in 2024 was driven by the higher valuations of Whirlpool India at that time. CEO Marc Bitzer expressed confidence in the long-term prospects of the Indian market despite the reduction in ownership.

Following that sale, Whirlpool India’s stock surged by 91% over the next eight months, reaching a high of ₹2,449 on October 22, 2024. However, since then, the stock has corrected by 36%, closing at a significantly lower level as of January 29, 2025.

“Whirlpool India will remain a relevant part of Whirlpool Corporation’s portfolio, and we continue to believe Whirlpool India has a strong long-term trajectory for growth. We intend the anticipated sell-down to result in autonomy for Whirlpool India to adjust to the ever-evolving industry conditions, enabling Whirlpool India to focus on accelerated growth and utilise its well-funded business to invest further in the business,” Whirlpool Corp’s statement said.

Furthermore, Whirlpool Corporation assured that brand license and technology agreements, along with transition commitments, would continue to support Whirlpool India’s operations and long-term business expansion.

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