Whirlpool of India ltd. shares declined 3 per cent in early trade on December 1 after its holding company sold up to 24 per cent stake in the company. This comes after Whirlpool Corporation announced its intention to enter into one or more transactions to sell up to 24 per cent of its ownership interest in Whirlpool of India Limited in 2024.
“The company maintains a 75 per cent ownership interest in Whirlpool India through a wholly-owned subsidiary, and intends to retain a majority interest in Whirlpool India following completion of such transaction or transactions,” it added.
Further, Whirlpool Corporation said it expects to use transaction proceeds to reduce debt levels, which will enhance balance sheet flexibility.
“Proceeds expected to be used for debt repayment are incremental to the USD 500 million term loan repayment that the company previously disclosed it expects to pay in the fourth quarter of 2023,” it added.
Whirlpool Corporation asserted that it continues to see India as a significant marketplace for growth and an integral part of its growth strategy and it “remains committed to expand the business with new product launches and the recently acquired Elica India business”.
Whirlpool of India is a listed entity with 25 per cent public shareholding.
Whirlpool of India has reported 5.6 per cent fall in its Q2 consolidated total revenue at Rs 1521.6 crore, while profit declined 22 per cent at Rs 38.2 crore.
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