Whirlpool of India Ltd shares rose 10% on 29 April after reports surfaced that prominent private equity firms are interested in a stake as the American appliance giant looks to reduce its ownership while maintaining a strategic presence in the region.

According to industry sources, Advent International, Bain Capital, TPG, EQT, Carlyle, and KKR have all been approached about the potential sale of a 31% stake in Whirlpool of India Ltd. The subsidiary now accounts for approximately 85% of Whirlpool India’s Asian income, with the US parent firm intending to retain a 20% interest.

According to the article, the company’s financial advisor, Goldman Sachs, initiated the formal sale process earlier this month. The parent company’s equity sale is expected to generate between $550 and 600 million (Rs 4,684-5,110 crore) in net proceeds.

People familiar with the prospective sale said that the process is in its early stages, and numerous funds have begun consulting with industry consultants to assess the opportunity.

Whirlpool sold a 24.7% share in its Indian unit to institutional investors such as Aditya Birla Sunlife Mutual Fund, SBI Mutual Fund, and Societe Generale in February 2024 for Rs 4,039 crore.

Despite being one of the first multinational electronics companies to enter India in the late 1980s, Whirlpool has failed to keep up with the expansion of later entrants like Samsung, LG, and Haier, as well as homegrown names such as Voltas and Lloyd.

Several private equity firms have already made successful investments in India’s consumer appliance industry, with Advent International and Temasek taking control of CG Consumer and exiting profitably on the public markets. They still own a controlling stake in Eureka Forbes, which was purchased from the financially ailing SP Group.

The shares climbed as much as 10% before trimming their gains at 2:28 pm to 7.37% higher at 1,288.30 on NSE. 

Wondering About Whirlpool India Ltd? The Analyst Has Answers.

Ready to invest like a pro? Unicorn Signals app equips you with 100+ Free tools and knowledge you need to succeed. Download the Unicorn Signals app and gain access to daily stock lists and insightful market analysis and much more!