HUL Demerger To Take Effect On Dec. 1: Board Sets Record Date, Share Ratio

The demerger of Kwality Wall's (India) Ltd. from Hindustan Unilever Ltd. will take effect on Dec. 1, the company announced on Tuesday. The board fixed Friday, Dec. 5, as the record date to determine the eligible shareholders entitled to receive equity shares of KWIL.

The share entitlement ratio is 1:1 which means one fully paid-up equity share of face value of Rs 1 in KWIL will be given for every one held in HUL.

The Kwality Wall's listing is anticipated in the fourth quarter of the current financial year, subject to necessary regulatory approvals, HUL executives told analysts during a recent earnings call.

Earlier this year, the fast-moving consumer goods giant announced the demerger and listed its ice cream company. After the HUL demerger is completed, Kwality Wall's will become an independent company, and its equity shares will be listed on the bourses.

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.

Revenue from the ice cream business declined year-on-year in the September quarter, impacted by extended monsoon in addition to GST transition. Kwality Wall's demerger is expected to result in an improvement of 50-60 bps to the reported margin as ice bream business operates at a margin lower than HUL average, as per the company.