Whirlpool of India witnessed its shares fall nearly 5% on February 20 as reports surfaced suggesting that its promoter, Whirlpool Mauritius, is looking to sell a stake in the company through a block deal. 

Whirlpool’s shares hit an intraday low of Rs 1,324, 4.77% lower than its previous closing price on the National Stock Exchange (NSE). At 2 pm, the stock was trading 1.50% lower at Rs 1,311.20. 

Several media sites reported that Whirlpool Corporation Mauritius Ltd, Whirlpool of India’s foreign promoter, could sell a 24% stake in the India-listed company through a block deal. Goldman Sachs is believed to manage the sale and advise Whirlpool Corporation on the agreement. 

The reports suggested that the stake sale would be offered at a floor price of Rs 1,230 per share, a discount of 7.6% from Monday’s closing price. The transaction is likely to be worth around $451 million or Rs 3,745 crore. 

As per December 31 2023 shareholding data, Whirlpool Mauritius held a 75% stake in Whirlpool of India. Market participants and brokerage houses expect the stake sale to cut the promoter company’s burden and improve its financial position. The liquidity from the stake sale will help the company pare its debt and deleverage its balance sheet.