Shares of Whirlpool of India Ltd. surged as much as 11% after the company announced a series of strategic licensing and service agreements with its parent company.

The company has entered into five key agreements, including a long-term 30-year brand license agreement with Whirlpool Properties.

The deal grants Whirlpool India exclusive rights to use the ‘Whirlpool’ brand in India and neighbouring countries, with an option to extend it by another 10 years.

Royalty rates are set at 1%-1.5% for major domestic appliances and 3% for small domestic appliances.

The agreements include guaranteed minimum royalty payments ranging from $6-12 million, while actual royalties are expected to exceed FY2025 levels (royalty paid in FY2025: $8.2 million).

According to Kotak Institutional Equities, these

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