Hindustan Unilever Shareholders Set to Receive 1:1 Shares in Kwality Wall’s as Ice Cream Division Spins Off

Hindustan Unilever has moved one step closer to spinning off its ice cream division into a brand-new entity, as the stock exchanges have cleared the path for this significant restructuring. With approvals from both the Bombay and National stock exchanges, the long-anticipated demerger of its ice cream vertical has now gained real momentum.

This move will carve out the frozen delights division into a standalone company named Kwality Wall’s (India) Limited (KWIL), housing cherished names like Kwality Wall’s, Magnum, and Cornetto. The ice cream segment has always stood apart from HUL’s core fast-moving consumer goods business, and this strategic split aims to highlight that uniqueness.

In a landscape where Hindustan Unilever’s share price has moved within a narrow band of 850 points over five years, ranging from around Rs 2,050 to Rs 2,900, with modest returns of just 16 percent, investors are looking at this as an opportunity to unlock hidden value.

Upon completion of the demerger, shareholders of Hindustan Unilever will receive one equity share of KWIL for every one share held in HUL. Once listed, KWIL will be directly owned by existing shareholders, marking a fresh chapter for those wishing to be part of the high-growth ice cream story.

“This demerger will unlock fair value for HUL shareholders and give them the flexibility to stay invested in Ice Cream’s growth journey,” affirmed Rohit Jawa, CEO and MD of Hindustan Unilever, reflecting on the company’s bold step forward.

Currently, as of March 2025 data, promoters hold a 61.90 percent stake in Hindustan Unilever, with domestic institutional investors owning 15.48 percent, foreign institutional investors holding 10.62 percent, and public investors making up the remaining 11.93 percent.

The transition is expected to reach completion by financial year 2026. This demerger is not only a strategic financial manoeuvre but also a signal to the markets that HUL is gearing up for more focused, category-driven growth ahead.

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