Hindustan Unilever Ltd (HUL) has set 5 December 2025 as the record date for the demerger of its ice‑cream business into a separate entity, Kwality Wall’s (India) Limited (KWIL). The move is part of HUL’s strategic plan to unlock value by separating its ice‑cream operations from its broader FMCG portfolio.
Under the approved demerger scheme, which came into effect on 1 December 2025, existing HUL shareholders as of the record date will receive one KWIL share for every HUL share held. This will give shareholders direct access to HUL’s ice‑cream business, which includes well-known brands like Cornetto, Magnum, Feast, and Creamy Delight. The newly formed KWIL is expected to be listed by February 2026, allowing investors to participate in the growth of the ice‑cream segment independently.
The announcement and record date triggered volatility in HUL shares. On the Bombay Stock Exchange (BSE), HUL’s stock fell sharply to an intraday low of ₹2,289, a drop of around 7%, before recovering to close the day down roughly 3.5%. Analysts attribute the initial decline to market adjustments as investors await the spin-off and recalibrate valuations for both HUL and the new ice-cream entity.
HUL’s management has emphasized that the demerger is intended to enhance operational focus and unlock shareholder value. By creating a pure-play ice‑cream company, the company aims to provide better visibility into the performance of its high-growth frozen dessert segment, separate from HUL’s core FMCG operations, which include personal care and household products.
The demerger follows a broader trend among large FMCG companies to unlock value through strategic spin-offs of high-potential business units. Analysts expect the move to strengthen both HUL and KWIL, with KWIL benefiting from dedicated management focus and increased investor interest, while HUL can concentrate on its core product categories.
For investors, the key takeaway is the opportunity to hold shares in both HUL and the newly listed KWIL, enabling participation in the growth trajectory of HUL’s ice‑cream business while retaining exposure to its established FMCG portfolio.
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