Mumbai, India – January 30, 2025
Whirlpool Corporation has announced its intention to reduce its ownership stake in Whirlpool of India Ltd. (NSE: WHIRLPOOL, BSE: 600238) from 51% to approximately 20% by mid to late 2025 through one or more market sales as part of its fourth-quarter earnings release. The move, referred to as the "Anticipated Sell-Down," was disclosed by Whirlpool Corporation in a filing with the United States Securities and Exchange Commission (SEC)
Key Highlights of the Sell-Down Plan
- Current Stake: Whirlpool Corporation owns a 51% stake in Whirlpool of India.
- Proposed Reduction: The company plans to sell its stake to around 20%.
- Timeline: The sale is expected to be completed by mid-to-late 2025.
- Execution: The reduction will be executed through one or more market sales.
Strategic Intent Behind the Move
Despite the sell-down, Whirlpool Corporation stated that it intends to remain the largest shareholder in Whirlpool of India after the transaction. The company reaffirmed its long-term commitment to the Indian market, emphasizing that Whirlpool India will continue to be a "relevant part" of its global portfolio.According to James Peters, Executive Vice President, Chief Financial and Administrative Officer, and Whirlpool Asia President, the decision aligns with Whirlpool India's long-term growth trajectory. The anticipated stake reduction is expected to:
- Enhance autonomy for Whirlpool India to better adapt to evolving industry trends.
- Support business investments, licenses, and technology agreements.
- Maintain brand strength and transition commitments, ensuring continued operations and expansion.
Implications for Whirlpool India and Shareholders
Whirlpool India is expected to leverage this transition to focus on accelerated growth, reinvesting in its business expansion, technology partnerships, and market presence. The company remains one of India's most trusted consumer appliance brands, and Whirlpool Corporation expects this move to deliver long-term value to shareholders.This announcement follows a global reassessment of Whirlpool Corporation’s investment strategies and market dynamics, particularly in emerging markets.
Market Reactions & Future Outlook
Investors and analysts will closely monitor the stake sale details, including pricing, market response, and potential new institutional or retail investors acquiring the divested stake. Whirlpool India’s stock performance in the coming quarters may reflect the strategic implications of this corporate restructuring.Whirlpool India has not announced any board-level changes or specific financial impacts resulting from the anticipated sell-down.
This disclosure has complied with Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015, and has been formally communicated to the BSE and NSE.