HUL Approves 1:1 Demerger Ratio, Paves Way For Kwality Wall's Listing

Hindustan Unilever Ltd. said on Wednesday that it plans to list its demerged ice-cream business on the bourses within a year.

On Wednesday, the board of HUL approved the demerger plan for its ice cream operations into a separately listed entity. Shareholders of the company will get one share of the Kwality Wall's business upon the demerger.

"We expect to receive all approvals and get the demerged entity listed by the March quarter of fiscal 2026," the HUL management told reporters in post-results briefing. The resultant company is proposed to be listed on the National Stock Exchange and the BSE.

HUL's ice cream business operates brands such as Kwality Wall's, Cornetto and Magnum. Revenue from the ice cream business in the December quarter remained flat year-on-year. At the end of FY24, the turnover of the ice cream business stood at Rs 1,595 crore, representing 2.7% of the total standalone turnover of the company, according to the company.

"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 said in a statement.

The board had earlier granted an in-principle approval for the same — a move it said was aimed at maximising value for shareholders and enhancing operational focus.

In a statement filed with the stock exchanges, the consumer goods giant detailed that the proposed demerger will allow existing shareholders to receive shares in the newly formed entity in proportion to their current holdings in HUL. The demerger is contingent upon obtaining necessary regulatory approvals and shareholder consent.

In September, the board had constituted a committee of independent directors to evaluate the prospects and way forward for the ice cream business following parent Unilever's decision to demerge the division. Based on the recommendation of the independent committee, the board had announced the separation of the business in October.

The demerger will enable the resultant companies to sharpen focus on their respective businesses and strategies to pursue growth and value creation models, HUL said.