HUL Demerger: Ice-Cream Business Spun off Into Kwality Wall’s; Record Date Set for 5 December
India’s largest FMCG company, HUL (Hindustan Unilever Limited), has formally demerged its ice cream business, Kwality Wall’s, into a standalone entity, Kwality Wall’s (India) Ltd (KWIL). It includes flagship ice cream brands Kwality Wall’s, Cornetto, and Magnum.
The structural separation got greenlit by the National Company Law Tribunal (NCLT), Mumbai Bench, on 30 October 2025.
With the demerger coming into effect and the record date approaching, HUL’s stock has already seen a jump; it was up 0.58% and trading at ₹2,462.20 as of 4 December 2025.
What Shareholders Should Know: Key Dates & Entitlements
- The effective date of the demerger is 1 December 2025, and the record date for shareholder entitlement is 5 December 2025.
- Under the scheme, each HUL shareholder will receive one fully paid-up equity share of KWIL for every HUL share they hold (a 1:1 ratio).
For instance, if an investor owns 10 shares of HUL, they will receive:
10 HUL shares * 1 KWIL share per HUL share = 10 KWIL shares
- The Magnum Ice Cream Company will acquire 61.9% of the issued and paid-up capital in Kwality Wall’s (India) Limited.
- After the spin-off, KWIL will begin independent operations, with separate management and capital allocation.
- The ice cream business contributes 3% to HUL’s turnover, i.e., ₹1,783 crore (for FY 2025)
- The listing of KWIL on the stock exchanges is expected in Q4 of Fiscal Year 2026 (i.e., by March 2026), subject to regulatory approvals and listing formalities.
Strategic Rationale: Why HUL Is Spinning Off Ice-Cream
Ice cream is a “high-growth business” with brands like “Kwality Wall’s, Cornetto and Magnum” operating in an attractive segment, and that demerger will “unlock fair value for HUL shareholders” and give them flexibility to stay invested in ice cream’s growth, said Rohit Jawa, CEO and Managing Director, HUL.
By demerging, HUL aims to sharpen its focus on its core portfolios (like personal care, home care, beauty, and nutrition), while giving the ice cream unit the flexibility and strategic clarity to scale independently.
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