Shares of this small-cap stock slipped approximately 2 percent in Tuesday’s trading session after the Promoter Group Entity likely offloaded a 24 percent stake in the company via a Block Deal.
With a market capitalization of Rs 16,544.72 crores, the stocks of Whirlpool of India Limited opened their trading hour on Tuesday at Rs 1,284 and currently trade at Rs 1,304.05, dipping around 2 percent as compared to the previous closing levels of Rs 1330.75 apiece.
Such bearish movements in the company’s share price were witnessed today after multiple reports intimated about “Whirlpool Mauritius Limited”, a Promoter Entity of Whirlpool of India Limited, likely offloaded around 3.2 crore equity shares of the company in the early trade on February 20th, equivalent to approximately 24.7 percent stake.
The abovementioned deal is estimated to be worth Rs 4,039 crores with the floor price for the deal to be Rs 1,230 per share.
With the pre-deal holding of 75 percent of the home appliance maker, the Promoter Group company had, in November 2023, indicated that it would reduce its stake in the company for the purpose of reducing its debt levels. Moreover, Whirlpool Corporation said that the parent intends to retain a majority interest following the completion of the stake sale.
During the recent financial quarters, the company’s basic business parameters, viz, operating revenues as well as after-tax profits, showed opposing movements with the former, on one end, increasing marginally from Rs 1,521 crores during Q2FY24 to Rs 1,535 crores during Q3FY24 and the latter, on the other end, falling from Rs 38 crores to Rs 29 crores.
The latest shareholding data for the December 2023 quarter portrays the company’s Promoters holding a 75 percent stake and the Foreign Institutional Investors (FIIs) holding a 3.64 percent stake in the company.
Whirlpool of India Limited is a company based in India that is engaged in the business of producing and selling major home appliances. The company’s product portfolio consists of refrigerators, air conditioners, washing machines, microwave ovens, built-in appliances, and others. The company generates a majority of its revenue from domestic operations within India.
Written by Amit Madnani
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