Kwality Wall’s (India) Ltd., which will be demerged from Hindustan Unilever Ltd. next week, will be part of the Nifty 50 index at a constant price for a short while. The spin off will be effective Monday, Dec. 1.
On Dec. 5, the ex-date for the HUL demerger, a special pre-open session (SPOS) will be conducted by the NSE from 9:00 a.m. to 9:45 a.m. On this day, the 50-stock index will be represented by 51 securities in the Nifty.
Kwality Wall’s India will be included in the Nifty 50 with a dummy symbol and at zero price, which is the difference between the demerged company's closing price on ex-date and price derived during SPOS.
As per NSE norms, the demerged entity will be removed from the index after end of day on third day of its listing, in this case Dec. 10.
In case, during the first two days, the stock hits the price band on both days, then the exclusion date will be deferred by another three days.
After observing two consecutive days of the spun-off business not hitting the price band, the stock will be removed after the third trading day of such observation.
If on such third day, Kwality Wall’s India again hits the price band, the exclusion will not be deferred anymore.
HUL board approved the demerger of Kwality Wall's in January 2025 and the FMCG major had received regulatory approvals from BSE and NSE in May. Shareholders gave their nod to the plan in August.
Kwality Wall's owns famous ice cream brands like Cornetto, Magnum, Feast, Creamy Delight and more.
KWIL will be a leading listed ice cream company in India, with an experienced management equipped with greater focus and flexibility to deploy strategies suited to its distinctive business model and market dynamics, thus realising its full potential, HUL has said.
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