Whirlpool of India Limited (BSE:500238)'s foreign promoter likely to offload 24% stake via block deal, according to media reports. Whirlpool of India Limited (BSE:500238)'s promoter, Whirlpool Mauritius Limited, will sell 24% stake worth $451 million (INR 37.45 billion) in the Indian appliance maker through a block deal on February 20, 2024, as per a term sheet reviewed by Mint. The liquidity from the stake sale will help the American multinational company pare its debt and deleverage its balance sheet.

The block deal will be offered at a floor price of INR 1,230 per share, representing a 7.6% discount from February 19, 2024?s closing price of INR 1,331.20 on the NSE. Goldman Sachs is managing the sale on behalf of the promoter, the term sheet said. Whirlpool Mauritius Ltd. held a 75% stake in Whirlpool of India as on 31 December 2023, stock exchange filings show.

In November last year, it had stated its intent to take some money off the table by selling 24% stake, while maintaining majority control in the Indian unit. Post the transaction, the parent will hold around 51% stake. As per deal details, around 19 million shares in the Indian unit will be sold along with a provision to offer an additional 11.4 million shares, for a total $451 million ($282 million plus $169 million).

The deal has a 90-day lock-up on seller if the upsize option is not fully exercised; else, 12 months lock-up on the seller's residual stake, as per the terms of the deal. According to an investment banker who is not part of the deal, the stake sale plans help the parent unlock some value in the Indian unit. "The parent is under debt obligation and the incoming investors see strong growth potential in the Indian market," he said on condition of anonymity.