HUL Demerger: FMCG Stock Rises On Shareholder's Approval For Listing Of Kwality Walls

HUL Demerger: Shares of Hindustan Unilever Ltd. traded higher on Wednesday, Aug. 13, after it announced that it had received the official shareholder's approval for the listing of its ice cream business. Earlier this year, the fast-moving consumer goods (FMCG) giant announced the demerger and listed its ice cream company -- Kwality Wall's (India) Ltd.

After the HUL demerger is completed, Kwality Wall's will become an independent company, and its equity shares will be listed on the bourses. In a regulatory filing to the stock exchanges, HUL had announced that it has secured shareholders' approval for the demerger of Kwality Walls.

HUL said that the demerger resolution was passed by "requisite majority". In its exchange filing, HUL said that a meeting of the equity shareholders was held on August 12 wherein the demerger resolution was put forth for voting. A total of 2005528966 votes were polled in favour of the resolution (99.9979%). HUL added that nearly 41,763 votes were polled against the resolution (0.0021%).

"The Resolution for approval of the Scheme of Arrangement amongst Hindustan Unilever Ltd, Kwality Wall’s (India) Ltd and their respective shareholders, as set out in the Notice dated July 7, 2025, has been passed by the members by requisite majority, pursuant to Section 230(6) of the Companies Act, 2013, through remote e-voting and e-voting at the Meeting," HUL said in its filing.

Last month, HUL management had said that the demerger of the ice cream business is under process and that it will be completed by the end of FY26.

According to the HUL demerger scheme, all the eligible shareholders will get one equity share of the resulting company (Kwality Wall's) for every one equity share held in HUL as on the record date. The demerger ratio is 1:1. The HUL demerger record date will be announced in the due course.

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. Kwality Wall's owns famous ice cream brands like Cornetto, Magnum, Feast, Creamy Delight and more.

On Wednesday, shares of HUL opened at Rs 2,485.00 and gained 0.1% intraday to hit a day's high of Rs 2,497.85 so far. At 12:30 pm, shares of HUL traded 0.03% higher at Rs 2,484 apiece on the BSE against a 0.31% rise in the Sensex index to 80,488.02.

HUL commands a market cap of Rs 5,83,297.78 crore. The FMCG stock has gained 6.80% on a year-to-date basis and dropped 9.39% in the last 12 months. The relative strength index was 62.23, nearing the overbought territory.