Description

Hindustan Unilever Limited is demerging its Ice Cream business into Kwality Wall's (India) Limited effective December 5, 2025, with a 1:1 share allocation ratio.

Summary

Hindustan Unilever Limited (Exchange Ticker: 500696, HINDUNILVR) is demerging its Ice Cream business into Kwality Wall’s (India) Limited with effect from start of trading hours on Friday, December 5, 2025. Shareholders will receive 1 equity share of Kwality Wall’s (India) Limited for every 1 equity share held in Hindustan Unilever Limited. A Special Pre-Open Session (SPOS) will be conducted on December 5, 2025, to enable price discovery of HINDUNILVR post-demerger.

Key Points

  • Demerger effective from start of trading on December 5, 2025
  • Share allocation ratio: 1:1 (1 Kwality Wall’s share for every 1 HINDUNILVR share)
  • Kwality Wall’s (India) Limited equity shares expected to list on BSE at a future date
  • Special Pre-Open Session scheduled for December 5, 2025, for price discovery
  • Kwality Wall’s will be added to 23 BSE indices at zero price without divisor adjustment

Regulatory Changes

This is a scheme of arrangement approved for demerger of the Ice Cream business vertical from Hindustan Unilever Limited into a separate listed entity, Kwality Wall’s (India) Limited.

Compliance Requirements

  • BSE will conduct a Special Pre-Open Session (SPOS) on December 5, 2025
  • Kwality Wall’s (India) Limited will be added to multiple BSE indices after close of December 4, 2025
  • Addition will be at zero price without divisor adjustment
  • Clients with queries should contact bseindex@bseindia.com

Important Dates

  • December 4, 2025 (Close): Kwality Wall’s added to indices at zero price
  • December 5, 2025 (Start of trading): Demerger becomes effective
  • December 5, 2025: Special Pre-Open Session for HINDUNILVR price discovery
  • Future date: Expected listing of Kwality Wall’s (India) Limited on BSE

Impact Assessment

Market Impact: High - This demerger affects a major SENSEX component and will impact 23 BSE indices including flagship indices like BSE SENSEX, BSE 100, BSE 200, and BSE 500.

Shareholder Impact: All HINDUNILVR shareholders will receive additional shares in Kwality Wall’s (India) Limited on a 1:1 basis, effectively creating two separate investment positions.

Index Impact: Kwality Wall’s will be added to the following 23 BSE Indices:

  • BSE SENSEX
  • BSE 100, BSE 200, BSE 500, BSE 1000
  • BSE FAST MOVING CONSUMER GOODS
  • BSE INDIA MANUFACTURING INDEX
  • BSE ALLCAP, BSE LARGECAP, BSE LARGEMIDCAP
  • BSE SENSEX 50, BSE SENSEX SIXTY, BSE SENSEX SIXTY 65:35
  • BSE 100 ESG INDEX
  • BSE 250 LARGEMIDCAP INDEX
  • BSE LOW VOLATILITY INDEX
  • BSE 100 LARGECAP TMC
  • BSE 200 EQUAL WEIGHT, BSE SENSEX EQUAL WEIGHT
  • BSE INDIA SECTOR LEADERS
  • BSE 1000 MULTICAP EQUAL SIZE WEIGHTED (25%)
  • BSE INDIA 150
  • BSE 500 LOW VOLATILITY 50
  • BSE MULTICAP CONSUMPTION (50:30:20)

Trading Impact: The Special Pre-Open Session will facilitate orderly price discovery for HINDUNILVR post-demerger, helping establish fair market value after the business separation.

Impact Justification

Major corporate restructuring of a SENSEX component affecting multiple BSE indices, requiring special pre-open session for price discovery and impacting all shareholders with 1:1 share allocation