HUL to Demerge Kwality Wall’s Unit; Shareholders to Get 1:1 KWIL Shares

Hindustan Unilever Ltd (HUL) has received regulatory approval from both BSE and NSE to proceed with the demerger of its ice cream business. The restructuring will result in the creation of a new company, Kwality Wall’s (India) Ltd (KWIL), and aims to unlock shareholder value by separating the high-growth segment from HUL’s core FMCG operations. 

Demerger Structure and Share Allocation Details 

The demerger will see HUL’s ice cream business, including brands like Kwality Wall’s, Cornetto, and Magnum, hived off into KWIL. As part of the scheme, shareholders of HUL will receive one equity share of KWIL for every one equity share held in HUL. Post demerger and listing, KWIL will be entirely owned by existing shareholders of HUL. The demerger is expected to be completed by FY26. 

Regulatory Approvals in Place 

Both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) have issued their respective approvals. BSE has stated that it has no adverse observations, while NSE has issued a no-objection certificate, clearing a key regulatory hurdle for the transaction. 

Management View and Strategic Rationale 

According to Rohit Jawa, CEO and Managing Director of HUL, the demerger would unlock fair value for shareholders and offer them the flexibility to invest specifically in the ice cream category’s growth. The ice cream division operates in a distinct segment from HUL’s core FMCG business and has shown strong growth potential. 

Shareholding Pattern  

As of March 2025, HUL’s promoters currently hold 61.90% of the company. Domestic institutional investors (DIIs) own 15.48%, foreign institutional investors (FIIs) hold 10.62%, and public shareholders account for 11.93%. 

Hindustan Unilever’s Share Price 

On May 16, 2025, shares of Hindustan Unilever (NSE: HINDUNILVR) opened at ₹2,360, higher than its previous close at ₹2,355.20. At 4 pm, the share price of Hindustan Unilever was at trading at ₹2,380, up by 1.05% on the NSE. 

Conclusion 

With approvals secured and share allocation terms defined, the demerger of HUL’s ice cream business marks a strategic shift aimed at unlocking growth potential and providing shareholders with direct exposure to a high-performing segment. The process is likely to conclude by the end of FY26. 

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