Description

Hindustan Unilever Limited 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 for every 1 share held in HUL.

Summary

Hindustan Unilever Limited (Exchange Ticker: 500696, HINDUNILVR) is demerging its Ice Cream business into Kwality Wall’s (India) Limited effective 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 held on December 5, 2025 by BSE Limited to enable price discovery of Hindustan Unilever Limited post-demerger. Kwality Wall’s (India) Limited will be added to 22 BSE indices at zero price without divisor adjustment.

Key Points

  • Demerger of Ice Cream business from Hindustan Unilever Limited into Kwality Wall’s (India) Limited
  • Effective date: Start of trading hours on Friday, December 5, 2025
  • Share exchange ratio: 1:1 (1 share of Kwality Wall’s for every 1 share of HUL)
  • Special Pre-Open Session (SPOS) scheduled for December 5, 2025 for price discovery of HUL post-demerger
  • Kwality Wall’s (India) Limited expected to list on BSE at a future date
  • Kwality Wall’s to be added to 22 BSE indices at zero price after close of December 4, 2025
  • No divisor adjustment for index inclusions

Regulatory Changes

This is a scheme of arrangement resulting in a demerger, requiring special market procedures including a Special Pre-Open Session for price discovery. The addition of Kwality Wall’s (India) Limited to multiple BSE indices represents a significant change to index composition.

Compliance Requirements

  • Market participants must prepare for the demerger effective December 5, 2025
  • Index tracking funds and portfolios need to accommodate the addition of Kwality Wall’s (India) Limited to 22 BSE indices
  • Price discovery through Special Pre-Open Session must be followed on December 5, 2025
  • For queries, clients should reach out to bseindex@bseindia.com

Important Dates

  • December 4, 2025 (Thursday): Last trading day before demerger; Kwality Wall’s added to indices at zero price after market close
  • December 5, 2025 (Friday): Demerger effective from start of trading hours; Special Pre-Open Session (SPOS) for HUL price discovery
  • Future date (TBD): Listing of Kwality Wall’s (India) Limited equity shares on BSE

Impact Assessment

Market Impact: High - This demerger affects a major SENSEX constituent and impacts 22 BSE indices including flagship indices like BSE SENSEX, BSE 100, BSE 200, and BSE 500. The Special Pre-Open Session is necessary to establish fair pricing post-corporate action.

Investor Impact: High - All shareholders of Hindustan Unilever Limited will receive equivalent shares in the newly formed entity, effectively splitting their investment across two companies. This creates a new investment opportunity in the standalone ice cream business.

Index Impact: High - Kwality Wall’s (India) Limited will be added to 22 BSE indices including:

  • BSE SENSEX
  • BSE 100, BSE 200, BSE 500
  • BSE FAST MOVING CONSUMER GOODS
  • BSE INDIA MANUFACTURING INDEX
  • BSE ALLCAP, BSE LARGECAP
  • BSE SENSEX 50, BSE SENSEX SIXTY
  • Various thematic and strategy indices

The zero price addition without divisor adjustment is a standard procedure for demerger situations to maintain index continuity.

Impact Justification

Major corporate restructuring of a SENSEX constituent affecting multiple BSE indices, with direct impact on shareholders and index constituents. The demerger creates a new listed entity and requires special price discovery session.