Whirlpool of India shares sink 10% ahead of promoter stake sale

Shares of Whirlpool of India declined nearly 10% in early trade on Thursday, ahead of a likely block deal.

Earlier, CNBC-TV18 reported, citing sources that the consumer durable maker's promoter Whirlpool Mauritius is likely to sell 7.5% equity worth around ₹980 crore via block deals.

The floor price was set at ₹1,030 per share and there would be a 90-day lock-up on the further sale of shares, post the block deal, sources added.

At the end of the September quarter, Whirlpool Mauritius held 51% stake in the company, having sold 24% in a block deal worth nearly ₹5,000 crore in February 2024.

In January this year, Whirlpool had announced that its parent company will be paring its 51% stake down to around 20% by the mid or end of this year. In its most recent earnings announcement, Whirlpool Corp., the parent entity said that it plans on completing this exercise by the first half of 2026.

Earlier this month, Whirlpool of India reported its September quarter earnings. Its net profit declined 20.6% to ₹41 crore from ₹52 crore in the previous year.

Its revenue was down 3.8% at ₹1,647 crore from ₹ 1,713 crore in the second quarter last fiscal.

The company's earnings before interest, tax, depreciation and amortisation (EBITDA) declined 33.8% to ₹57.6 crore from ₹87 crore last year.

Its EBITDA margin contracted to 3.5% from 5% in the year-ago period.

Shares of Whirlpool of India ended the previous session 0.5% up. The stock has declined 13.6% in the past month and 33.8% this year, so far.

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