Whirlpool of India shares surge 20% as promoter Whirlpool Mauritius eyes full exit: Sources

Whirlpool Mauritius held a 39.76% stake in Whirlpool India as of June. Sources told CNBC Awaaz that the deal is in its final stages, with an announcement expected in the coming weeks.

Shares of Whirlpool of India Ltd surged 20% to ₹865.25 on the NSE on Wednesday, gaining ₹144.20.

Buyers in the race

The list of potential buyers includes large investors as well as a major multinational consumer durables company, sources said. However, the identity of the buyer, the final deal value and other terms have not yet been confirmed.

A complete exit by Whirlpool Mauritius would mark a significant shift in Whirlpool India’s ownership structure, particularly given the promoter’s long-running reduction in its holding.

Whirlpool Mauritius has been selling its stake in the Indian business since 2023. Its holding has fallen from around 75% to 39.76% over the past three years.

The promoter sold an 11.24% stake last year, following the broader plan to reduce its exposure to the Indian business.

Exit plan has been under way

The potential full exit is therefore not a sudden development. Whirlpool’s parent had disclosed plans to sell part of its stake in the Indian business in December 2023, with the promoter subsequently reducing its holding through stake sales.

What makes the latest development significant is the possibility that Whirlpool Mauritius could now sell its entire remaining 39.76% holding, effectively ending its direct promoter stake in Whirlpool India.

The eventual buyer could also become an important factor for investors. The impact on Whirlpool India’s stock and future strategy would depend on who acquires the stake, the price at which the transaction is struck and the plans for the business following the deal.

A strategic buyer from the consumer durables space could bring a different set of possibilities for the company, while a financial investor could take a different approach. At this stage, however, there is no confirmation of a specific buyer or the terms of the proposed transaction.

CNBC Awaaz has reached out to Whirlpool India’s management for a response and is awaiting a reply.

For now, the key takeaway is that Whirlpool Mauritius is looking to exit its remaining stake, but the transaction has not been officially announced and remains subject to finalisation.