The shares of this company reacted positively after its parent company announced selling a stake in its Indian subsidiary, which has attracted a lot of interest from different private equity players, such as KKR, Advent International, Bain Capital, etc
Price Movement
With a market capitalization of Rs 16,499 crore, the shares of Whirlpool of India Ltd are currently trading at Rs 1,300 per share, down by 47 percent from its 52-week high of Rs 2,450 per share. In the last year, the stock has given a negative return of 11.69 percent.
About the announcement
According to a report published by The Economic Times, Whirlpool Corp. plans to sell a 31 percent stake in Whirlpool of India Ltd, which accounts for 85 percent of the company’s Asia revenue, while holding on to a 20 percent interest.
Private equity firms such as Advent International, Bain Capital, TPG, EQT, Carlyle, and KKR are among those that have been approached to invest in Whirlpool’s publicly traded Indian unit i,e, Whirlpool of India, the Economic Times said on Tuesday.
The firm seeks to raise Rs 4,684-5,110 crore from this sale, initiated earlier this month with Goldman Sachs as an advisor, the report added.
The acquisition could be for several funds buying the stake jointly, with Whirlpool Corp. interested in continuing to be the largest shareholder. The deal has drawn big interest, with several funds, some of which are also in the running for buying a stake in Haier India, looking into the possibility, the ET report added.
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Financial Highlights
It reported revenue of Rs 1,705 crores in Q3 FY25, up 11 percent from its Q3 FY24 revenue of Rs 1,536 crores. Additionally, it reported a net profit of Rs 45 crores in Q3 FY25, up by 50 percent, from its Q3 FY24 net profit of Rs 30 crores. It has an ROE and ROCE of 6.36 percent and 9.07 percent, respectively, and is trading at a P/E of 49.71x as compared to its industry average of 51.51x.
About the company
Whirlpool of India Limited, which was incorporated in 1960 and has its head office in Gurugram, India, produces and sells home appliances like refrigerators, washing machines, air conditioners, microwaves, dishwashers, and small kitchen appliances. It is a subsidiary of Whirlpool Corporation and operates in Indian and international markets.
Written by Satyajeet Mukherjee
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