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HUL To List Demerged Ice Cream Business As a Separate Entity

Written by: Team Angel OneUpdated on: Jan 23, 2025, 2:50 PM IST
HUL plans to demerge and list its ice cream business, Kwality Wall’s, by fiscal 2026 offering one share in KWIL for every HUL Share.
HUL To List Demerged Ice Cream Business As a Separate Entity
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Hindustan Unilever Ltd. (HUL) has announced plans to list its demerged ice cream business as a separate entity within a year. The move is aimed at unlocking value for shareholders and enhancing operational focus for the ice cream segment.

Details of the Demerger Plan

On Wednesday, HUL’s board approved the demerger of its ice cream business, which includes well-known brands such as Kwality Wall’s, Cornetto, and Magnum. Shareholders of HUL will receive one share in the newly formed company, tentatively named KWIL, in proportion to their current holdings.

The company expects to complete the required regulatory and shareholder approvals, with the demerged entity proposed to be listed on the National Stock Exchange and the Bombay Stock Exchange by the March quarter of fiscal 2026. HUL’s ice cream business accounted for ₹1,595 crore in turnover at the end of FY24, representing 2.7% of its total standalone turnover.

A Focused Growth Strategy

The demerger decision aligns with parent company Unilever’s strategic directive to separate its ice cream division. HUL constituted an independent committee in September to evaluate the prospects of this business, following which the board approved the separation in October.

HUL stated that the move would allow KWIL to focus exclusively on its ice cream operations, enabling greater flexibility to implement strategies tailored to market dynamics. With its demerger, HUL aims to provide the new entity with the tools to realise its full potential as a standalone company.

HUL Share Performance

As of January 23, 2025, at 12:55 PM, With a market capitalisation of ₹5,50,497 crores, HUL shares are trading at ₹2,331.35 per share, down 0.51% from yesterday’s closing price. Over the last month, the stock has declined by 0.2% and over the past year, it has dropped by 4.84%

Conclusion

HUL’s decision to demerge its ice cream business reflects a strategic step towards optimising growth opportunities for both HUL and KWIL. The transition to a listed entity is set to be completed by fiscal 2026, marking a significant shift in HUL’s operational focus.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Jan 23, 2025, 2:50 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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