HUL Demerger: What investors should know about Kwality Wall’s ice cream business

Following approval from the BSE and NSE to move forward with the demerger of its ice cream business into a new entity — Kwality Wall’s (India) Limited (KWIL) — Hindustan Unilever (HUL) is in the news. It is anticipated that the move will increase shareholder value and provide investors with direct access to the rapidly expanding ice cream market, which includes well-known brands like Magnum, Cornetto, and Kwality Wall’s.

What shareholders will get after the demerger

According to the official announcement, HUL shareholders will get one equity share of KWIL for every one equity share owned in HUL. After demerger and listing, HUL shareholders will directly own 100 per cent of KWIL’s shareholding. The demerger is anticipated to be finished by FY26.

Why HUL is splitting its ice cream biz

HUL CEO & MD Rohit Jawa claims “The demerger will unlock fair value for HUL shareholders and give them the flexibility to stay invested in ice cream’s growth journey.”

BSE, NSE approvals clear major hurdle

HUL was allowed to go forward with the structural change since the BSE sent a no adverse observation letter and the NSE provided a no-objection statement. The company is now preparing for additional compliance and listing procedures as this represents a significant turning point in the demerger process.

Company performance in Q4FY25

While the NSE provided a no-objection statement, the BSE sent a no adverse observation letter permitting HUL to go on with the structural change. The demerger process has reached a key turning point with this; the business is now preparing for more listing formalities and compliance.

Promoter holding remains strong

Promoters had 61.90 per cent as of March 2025; DIIs and FIIs owned 15.48 per cent and 10.62 per cent, respectively. Public shareholding was 11.93 per cent.