HUL demerger: The demerger of FMCG major Hindustan Unilever’s (HUL) ice-cream business, Kwality Wall’s (India), became effective on December 1, 2025. Under the approved HUL demerger scheme, the company will transfer all its ice-cream brands — including Kwality Wall’s, Cornetto, Magnum, Feast, and Creamy Delight — to the newly formed entity.
The ice-cream division currently accounts for about 3% of HUL’s annual turnover, contributing nearly ₹1,800 crore in revenue.
HUL demerger effective date was Monday, December 1, while the HUL demerger record date for determining shareholder eligibility is Friday, December 5. Shareholders holding HUL shares as of the record date will be entitled to receive equity shares of the demerged entity. The company has set December 29 as the share allotment date.
HUL demerger share entitlement ratio is 1:1. This means eligible shareholders will receive one share of Kwality Wall’s (India) for every one share of HUL held on the record date.
Hindustan Unilever demerger scheme had received approval from the National Company Law Tribunal (NCLT) on October 30, 2025.
HUL Share Price Adjustment
The stock exchanges, BSE and NSE, will conduct a special pre-open session on December 5, the HUL demerger record date, to facilitate price discovery. This process will determine the fair value of HUL shares net of the ice-cream business. Following the special session, HUL share price will be adjusted to reflect the demerger of Kwality Wall’s (India).
Kwality Wall’s to Be Temporarily Included in Nifty 50
The National Stock Exchange of India (NSE) has announced that Kwality Wall’s (India) will be included in the Nifty 50 index from December 5. As part of the index adjustment, the demerged entity will be temporarily added to 35 Nifty indices at a zero price, using a provisional ticker ‘DUMMYHDLVR’.
The price of this dummy security will reflect the difference between HUL’s closing price on T-1 and the discovered price during the special session. If the discovered price equals or exceeds the previous close, the dummy stock will remain at zero and will stay frozen until the actual listing of Kwality Wall’s.
Changes in Futures & Options (F&O) Segment
All existing HUL derivatives contracts will expire at the end of the trading session on December 4. On the record date, both exchanges will conduct a special pre-opening session to determine HUL’s adjusted price post spin-off. After price discovery, exchanges will introduce fresh F&O contracts aligned with the revised corporate structure.
Kwality Wall’s Shares Listing
HUL has not announced the listing date of Kwality Wall’s (India) shares. The company said that the process of allotment, credit, and listing of KWIL shares will be undertaken in due course.
However, as per the SEBI rule, the statutory timeline for the listing and commencement of trading of shares of KWIL is within a period of 60 days from the receipt of NCLT approval, it added.
Kwality Wall’s Estimated Listing Price
Kwality Wall’s (KWIL), now a standalone, pure-play ice-cream company and part of a global parent, is viewed positively by analysts for its long-term growth potential. The recent GST cut—from 18% to 5%—is expected to improve affordability and accelerate the shift toward organised players.
The company reported sales and volume growth of 4.5% and 6.5% YoY, respectively, in H1FY26, and a CAGR of 12.6% and 8.5% over FY20–25. Its EBITDA margin stood at 7.1% in FY25 but compressed to zero in H1FY26 due to inflation in cocoa prices, supply chain investments, GST transition effects, and costs associated with operating as a standalone entity.
Nuvama Institutional Equities has pegged the implied valuation of Kwality Wall’s at ₹1,200 – ₹1,500 crore, translating to approximately ₹50 – ₹55 per share.
“Over the long term, KWIL offers potential for a significant re-rating as profitability improves, premiumisation accelerates and cold-chain distribution footprint expands. We expect KWIL to list in February and at a likely 5x EV/sales in our view (i.e. ₹50–55), a discount to HUL’s ~9x EV/sales,” said Nuvama Equities.
Overall, it remains positive on HUL shares and retains a ‘Buy’ rating on the stock with an unchanged target price of ₹3,200 apiece.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
