HUL-Kwality Wall's demerger record date fixed for December 5: What it means for shareholders
The shares of Hindustan Unilever (HUL) are set to adjust to the demerger of its ice-cream business, Kwality Wall's (India), after a special pre-open session on December 5. The shareholders who own shares of HUL as on that day will be eligible to receive free shares of the demerged ice cream unit.
HUL shares rose nearly 1 percent on Monday to trade at Rs 2,488 apiece, the highest level seen by the stock in more than a month.
About HUL-Kwality Wall's demerger:
Earlier in November 2024, HUL approved the demerger of the ice cream business, which operates popular brands including 'Kwality Wall's', 'Cornetto' and 'Magnum'. National Company Law Tribunal (NCLT) approved the demerger scheme on October 30.
The ice cream business forms 3 percent of HUL's total yearly turnover, contributing Rs 1,800 crore to the total revenue.
Demerger ratio:
The share entitlement ratio has been set at 1:1. This means that every shareholder of HUL will receive one share of the ice cream business for every share of the FMCG major they own, as on the record date.
Record date:
The allotment date has been fixed at December 29. The record date to determine the eligibility of the shareholders set to receive the free shares has been set on December 5. This means that those HUL shareholders whose names appear in the register of members as on the record date will be entitled to receive free shares of KWIL as part of the demerger.
When will KWIL shares debut on stock exchanges?
HUL said the process of allotment, credit and listing of the demerged Kwality Wall's India shares will be undertaken in due course of time. According to market regulator SEBI's rules, the shares of the demerged entity will need to be listed within 60 days from NCLT's approval of the demerger scheme.
Kwality Wall's shares to be added to Nifty 50:
The National Stock Exchange (NSE) on November 28 had announced that Kwality Wall's India will be included in the Nifty 50 index from December 5. The stock exchange will conduct a special pre-open session for HUL on December 5, ahead of the FMCG major’s planned demerger of its ice-cream business into Kwality Wall’s India.
As part of the index adjustments, the demerged entity will be briefly added to 35 Nifty indices at a zero price, using a dummy symbol 'DUMMYHDLVR'.
HUL share price history:
HUL shares have now extended gains for the fourth consecutive session. The shares of the company have risen around 3 percent in the past five days, and around 5 percent in the past six months. The stock is so far up more than 7 percent in 2025.
Its P/E ratio currently stands at around 54, and the company has a market capitalisation of more than Rs 5.8 lakh crore.
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