Shares of Whirlpool of India fell sharply after its promoter, Whirlpool Mauritius Limited, announced plans to sell part of its stake. The sale will be around 7.5 % of the company, roughly 95 lakh shares, and could raise about ₹965 crore.
The shares will be offered at a “floor price” of ₹1,030 each, about 14 % lower than the previous closing price of ₹1,201.40. Following this announcement, the stock fell as much as 13 % on the Bombay Stock Exchange, hitting ₹1,041.
The sale comes amid weak recent performance. In the September quarter, Whirlpool of India’s consolidated net profit dropped around 21 % to ₹41 crore, while revenue also fell slightly. Over the past year, the company’s shares have declined about 33 %, underperforming the market.
Analysts say the promoter’s sale is part of a long-term trend of the parent company reducing its stake in India. The money from the sale may help the parent company reduce global debt rather than indicate a full exit from Whirlpool of India.
Also Read: Tesla plans deeper India push with full EV ecosystem