- Hindustan Unilever shares go ex-date Friday for Kwality Walls demerger
- BSE and NSE hold special pre-open session for post-demerger price discovery
- Share entitlement ratio set at 1:1 for HUL and Kwality Walls shares
Hindustan Unilever Ltd. shares will trade ex-date on Friday for the demerger of Kwality Wall's India Ltd. The stock exchanges BSE and NSE will conduct a special pre-open session to determine the fair price of HUL shares post-demerger.
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.
Price Discovery & Listing
The special session will be conducted from 9:00 a.m. to 10:00 a.m. It 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 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.
Demerger Rationale
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.
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.
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