Hindustan Unilever (NSE: HUL) is set to officially demerge its ice-cream business into a new listed company, Kwality Wall’s, and the market is gearing up for several changes this week. The record date for this corporate action is Friday, December 5, and HUL shareholders will receive 1 share of Kwality Wall’s for every 1 HUL share they hold.

F&O Contracts to Expire Before the Record Date

All existing HUL futures and options contracts will expire on December 4. On the record date, the exchanges will run a special pre-opening session to determine HUL’s adjusted price after removing the ice-cream business. Once this price is discovered, fresh F&O contracts will be introduced based on the new structure.

How Indices Will Adjust

Global and domestic index providers will temporarily add Kwality Wall’s in their baskets:

• MSCI and FTSE will add Kwality Wall’s at the discovered price on the record date and remove it once the new stock is officially listed.
• Nifty and Sensex will add a dummy stock at zero price alongside HUL on the day before the record date.
• This dummy stock will reflect the difference between HUL’s T-1 closing price and the discovered price during the special session.
• If both prices match or the discovered price is higher, the dummy stock stays at zero until the actual listing.

Kwality Wall’s Listing Timeline and Index Removal

Kwality Wall’s could take around a month to list after regulatory approvals.
Once trading begins:

• NSE will remove it from indices after 3 trading days if the stock stays within its price bands for 2 days in a row.
• BSE will still remove it even if it hits the upper band, as only the lower band is considered for exclusion.

Also Read: NSE Revises Quantity Freeze Limits for Fin Nifty: What You Need to Know?

Why This Week Matters for Traders

With major price adjustments, index reshuffles, and derivative expiries, this will be an important week for those tracking HUL. The demerger marks one of the biggest corporate changes for the FMCG giant, and investors are preparing for the arrival of a fresh standalone Kwality Wall’s entity on the exchanges.

Conclusion

HUL’s upcoming demerger will bring significant market adjustments, from price discovery to index changes. Investors can expect short-term volatility as the stock realigns with its new structure and Kwality Wall’s moves closer to its listing.

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. 

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