New Delhi, Jan 30 US-based home appliances company Whirlpool Corporation on Thursday announced plans to reduce its ownership in its Indian subsidiary, Whirlpool of India Limited, to around 20 per cent by mid to late 2025.
In the early trade, the shares of Whirlpool India dropped by 20 per cent to hit the lower circuit, trading at Rs 1,262.
The company, which currently holds a 51 per cent stake, said in a stock exchange filing that it would sell shares in one or more transactions but will remain the largest shareholder even after the sale.
Whirlpool expects to generate net cash proceeds of $550 million to $600 million from this planned stake reduction.
Despite the sale, the company reaffirmed its commitment to the Indian market. In a stock exchange filing, the company stated that Whirlpool India would continue to be an important part of its global business and has strong long-term growth potential.
"Whirlpool India will remain a relevant part of Whirlpool Corp's portfolio and we continue to believe Whirlpool India has a strong long-term trajectory for growth," the company said in its filing.
The company also emphasised that the move would give Whirlpool India more flexibility to adapt to changing industry trends and accelerate its growth.
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The consumer electronics firm also reassured that its brand licensing, technology agreements, and transition plans would remain in place to support business continuity and long-term growth.
Jim Peters, the company’s Chief Financial and Administrative Officer, said the company has taken significant steps to strengthen its financial position, including repaying $500 million in debt and improving our working capital.
Peters further added that the company’s financial strategy for 2025, including the planned stake sale, aims to maximise shareholder value and enhance the company’s balance sheet.
In the six months from July to December 2024, Whirlpool Corp reported $0.4 billion in net sales from India, with earnings before interest and taxes (EBIT) of $3 million which was a margin of 0.7 per cent.
The company is set to announce its December quarter results (Q3) on February 4. In the early trade, the shares of Whirlpool India dropped by 20 per cent to hit the lower circuit, now trading at Rs 1,262.
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