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 ratio for shareholders.

Summary

Hindustan Unilever Limited (Exchange Ticker: 500696, HINDUNILVR) is demerging its Ice Cream business into Kwality Wall’s (India) Limited with effect from 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. Kwality Wall’s (India) Limited will be added to 24 BSE indices at zero price effective December 5, 2025.

Key Points

  • Demerger of Hindustan Unilever’s Ice Cream business into Kwality Wall’s (India) Limited
  • Share exchange ratio: 1:1 (1 share of Kwality Wall’s for every 1 share of HINDUNILVR)
  • Kwality Wall’s equity shares expected to list on BSE at a future date
  • Special Pre-Open Session scheduled for December 5, 2025, for price discovery of HINDUNILVR post-demerger
  • Kwality Wall’s to be added to 24 BSE indices at zero price without divisor adjustment
  • Affected indices include BSE SENSEX, BSE 100, BSE 200, BSE 500, and 20 other indices

Regulatory Changes

No regulatory changes. This is a corporate action announcement regarding a scheme of arrangement approved for demerger.

Compliance Requirements

  • BSE Limited will conduct a Special Pre-Open Session (SPOS) on December 5, 2025, for HINDUNILVR price discovery
  • Kwality Wall’s (India) Limited will be added to BSE indices after close of December 4, 2025, at zero price
  • No divisor adjustment will be made for the index inclusion
  • Market participants should note the demerger effective date for trading purposes

Important Dates

  • December 5, 2025: Demerger effective from start of trading hours
  • December 5, 2025: Special Pre-Open Session (SPOS) for HINDUNILVR price discovery
  • December 4, 2025: Close of trading after which Kwality Wall’s will be added to indices
  • Future date (TBD): Expected listing date for Kwality Wall’s (India) Limited equity shares on BSE

Impact Assessment

Market Impact: High. This demerger affects a BSE SENSEX constituent company and will impact 24 major BSE indices. The Special Pre-Open Session indicates potential significant price volatility and the need for proper price discovery mechanism post-demerger.

Investor Impact: HINDUNILVR shareholders will receive additional shares in Kwality Wall’s (India) Limited on a 1:1 basis, effectively separating the ice cream business from the core FMCG operations. This may affect portfolio valuations and investment strategies.

Index Impact: Kwality Wall’s (India) Limited will be added to 24 BSE indices including major benchmarks (SENSEX, BSE 100, BSE 200, BSE 500) at zero price without divisor adjustment, which may temporarily affect index calculations and weightings.

Trading Impact: The SPOS on December 5, 2025, is critical for establishing fair market price for HINDUNILVR post-demerger. Market participants should prepare for potential price adjustments and trading activity around this event.

Impact Justification

Major corporate restructuring of a BSE SENSEX constituent company affecting multiple indices and requiring special trading session for price discovery