HUL Demerger: Last Day To Apply | Check Share Split Ratio, Price Discovery, Listing Date And Other Key Details

Investors looking to make the most of Hindustan Unilever Ltd.'s demerger with Kwality Walls must act today, as Thursday, Dec. 4, has been marked as the last trading day to qualify for eligibilty.

Although the official record date for the demerger is Friday, Dec. 5, India's T+1 settlement cycle effectively means investors must purchase HUL shares by market close on Thursday to appear on the company's books.

The share entitlement ratio of the HUL and Kwality Walls demerger has been set at 1:1, which means one fully paid-up equity share of face value of Rs 1 in KWIL will be given for every share held in HUL.

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.

On Friday, Dec. 5, stock exchanges BSE and NSE will conduct a special pre-open session to determine the fair price of HUL shares post-demerger.

This session will facilitate price discovery by stripping the value of the ice cream business from the main stock.

Investors must also note that Kwality Wall’s (India) Ltd will be part of the Nifty 50 index at a constant price for a short while.

Once the special session is conducted, 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 essentially the difference between the demerged company's closing price on ex-date and price derived during SPOS.

The demerger of Kwality Walls India aligns with parent company Hindustan Unilever’s global strategy to separate its ice cream operations.

The restructuring aims to unlock value for the ice cream vertical, which is home to brands like Cornetto, Magnum, and Feast.