Whirlpool India shares plunge 20%; here's what triggered the sharp decline

Shares of home appliance maker Whirlpool of India tanked to a whopping 20% today after Whirlpool Corporation, its parent company, announced that it would dilute its ownership stake further from the existing 51% to up to 20% by mid-to-late-2025.

As of 2.00 pm today, Whirlpool India's share were trading at ₹1260.8 a piece.

Whirlpool Corporation has revealed its plans to reduce its stake in Whirlpool India, potentially bringing its ownership below 26%, following a year of significant moves in the Indian market. Currently holding a 51% stake in the company, Whirlpool Corporation said in its statement that it anticipates this sell-down would result in its becoming a minority shareholder, although the home appliance maker would still remain the largest shareholder after the transaction is completed.

This announcement came alongside the company’s quarterly earnings report, marking a year since Whirlpool sold a 24.7% stake in Whirlpool India for ₹4,039 crore in February 2024. The shares were priced at ₹1,280 each, but since then, the stock has experienced fluctuations, including a significant dip, with shares recently trading below those levels due to a 20% lower circuit.

At the time of the sale, CEO Marc Bitzer cited the Indian unit’s high valuations as a key factor in the decision to reduce its stake. However, Bitzer also emphasized Whirlpool’s ongoing confidence in India’s long-term business prospects. Over the next eight months, the stock surged 91%, reaching a high of ₹2,449 in October 2024. Despite this, it has since corrected 36% as of the latest closing.

In a statement, Whirlpool Corporation reaffirmed its commitment to Whirlpool India, describing the company as a vital part of its portfolio. The planned sell-down is aimed at giving Whirlpool India greater autonomy to adapt to the dynamic market conditions and accelerate growth. The parent company assured that continued brand licensing, technology agreements, and transition commitments will ensure the company’s long-term success and expansion in the Indian market.