Hindustan Unilever Ltd (HUL) is moving forward with the demerger of its ice cream business, Kwality Wall's (India) Ltd (KWIL), with key dates now confirmed. This strategic move aims to unlock additional value by separating the high-growth segment from HUL's core fast-moving consumer goods (FMCG) operations. Here's what investors need to know:
Effective Date: The demerger will officially take effect on December 1, 2025. This is the date when the ice cream business legally separates from HUL. According to HUL, the effective date aligns with Clause 1.9 of the approved scheme, stipulating that the demerger comes into effect on the first calendar day of the month following the fulfillment of all required conditions. This date will also serve as the "Appointed Date" for the demerger process. All statutory and procedural requirements necessary for the separation of the ice cream business have been completed.
Record Date: The record date is set as Friday, December 5, 2025. Investors holding HUL shares on this date will be eligible to receive shares in the newly formed KWIL. The record date determines which shareholders qualify for the new shares after the demerger.
Share Entitlement Ratio: The share entitlement ratio is fixed at 1:1. This means that for every one equity share of HUL held (with a face value of Re 1), shareholders will receive one equity share of KWIL (also with a face value of Re 1).
The New Entity: The demerger will result in a standalone, publicly listed ice cream company housing well-known brands such as Kwality Wall's, Cornetto, and Magnum. The National Company Law Tribunal (NCLT) approved the arrangement in October 2025, followed by a rectification order on November 6. This plan aligns with Unilever PLC's global strategy to separate its ice cream vertical into independent units across markets. Following the demerger, The Magnum Ice Cream Company will acquire 61.9% of Kwality Wall's (India) Limited from the Unilever Group.
HUL received regulatory approvals from the BSE and NSE in May 2025. The listing of Kwality Wall's is anticipated in the fourth quarter of the current financial year, subject to necessary regulatory approvals.
