HUL Demerger: FMCG giant receives BSE, NSE nod to spin off Kwality Walls ice cream biz— Check shareholding ratio

HUL has received a go-ahead from BSE and NSE for the demerger of the company’s ice cream business. The demerger will lead to the creation of a new entity - Kwality Wall's (India) Limited (KWIL).

In a regulatory filing, HUL said that in reference to the letter dated January 22, 2025 about the decision of the company board approving the demerger, “…we would like to inform you that HUL has received observation letter with “no adverse observations” from BSE Limited on 14th May 2025 and observation letter with “no objection” from the National Stock Exchange of India Limited on 14th May 2025 in relation to the Scheme.”

HUL approves demerger of Kwality Walls as listed entity: Here's what shareholders must know

Per the demerger, every HUL shareholder will receive one Kwality Walls share for each HUL share owned. The move was approved during the board meeting held today when Unilever’s India unit announced a 1:1 share ratio for its existing shareholders. HUL will own 100 per cent of Kwality Walls' issued and subscribed share capital.

“For every 1 (one) equity share of face value of Re. 1 fully paid up held in the demerged company, 1 (one) equity share of face value of Re. 1 credited as fully paid up will be issued in the resulting company," said HUL.

Rohit Jawa, CEO and Managing Director, HUL said: “Our ice cream category is a high-growth business with iconic brands such as ‘Kwality Wall’s’, ‘Cornetto’ and ‘Magnum’, operating in an attractive segment. The demerger will unlock fair value for HUL shareholders and give them the flexibility to stay invested in ice cream’s growth journey.”

Hindustan Unilever Ltd (HUL) said its consolidated net profit dipped 3.35 per cent to ₹2,475 crore in the fourth quarter ended March 2025, hit by a contraction in margins due to inflation in palm oil, tea and coffee. HUL had logged a net profit of ₹2,561 crore in the January-March quarter a year ago, the company said in a regulatory filing.

HUL added that Kwality Walls (India) will be a leading listed ice cream company in India, with experienced management equipped with greater focus and flexibility to deploy strategies suited to its distinctive business model and market dynamics, thus realising its full potential.

HUL's ice cream business, where it operates with brands such as Kwality Wall's, Cornetto and Magnum, delivered double-digit volume-led growth. However, revenue from product sales stood at ₹15,416 crore in the March quarter, led by volume growth. It rose 2.68 per cent from ₹15,013 crore in the year-ago period.