Whirlpool of India share price falls 5% on promotor stake sale
₹1,280 against the previous close of ₹1,331.20 and soon fell 4.7 per cent to hit the low of ₹1,268. Around 9:30 am, the stock traded 2.73 per cent lower at ₹1,294.90 on NSE. Whirlpool of India's promoter, Whirlpool Mauritius Ltd, will sell a 24 per cent stake worth $451 million ( ₹3,745 crore) in the company through a block deal on Tuesday, as per a term sheet reviewed by Mint.
The liquidity from the stake sale will help the American multinational company pare its debt and deleverage its balance sheet. The block deal will be offered at a floor price of ₹1,230 per share, representing a 7.6 per cent discount from Monday’s closing price of ₹1,331.20 on the NSE. Goldman Sachs is managing the sale on behalf of the promoter, the term sheet said.
Whirlpool Mauritius Ltd. held a 75 per cent stake in Whirlpool of India as of 31 December 2023, stock exchange filings show. In November last year, it had stated its intent to take some money off the table by selling a 24 per cent stake, while maintaining majority control in the Indian unit.
Post the transaction, the parent will hold around 51 per cent stake. As per deal details, around 19 million shares in the Indian unit will be sold along with a provision to offer an additional 11.4 million shares, for a total of $451 million ($282 million plus $169 million). The deal has a 90-day lock-up on the seller if the upsize option is not fully exercised; otherwise, a 12-month lock-up on the seller’s residual stake, as per the terms of the deal.
Read more on livemint.com
