In a significant corporate restructuring move, Hindustan Unilever Limited (HUL) has reached a pivotal milestone today. Friday, December 5, 2025, marks the official record date for the demerger of its iconic ice cream business, Kwality Wall's (India). This means that from today onwards, shares of the FMCG giant will be traded on the stock exchanges excluding the value of the ice cream division.
Special Pre-Open Session for Price Discovery
To ensure a smooth transition and fair valuation, the leading stock exchanges, BSE and NSE, will conduct a special pre-open session today. This unique session is crucial as it will facilitate the price discovery process for HUL shares, net of the ice-cream business. The outcome of this session will determine the adjusted fair value of HUL stock, reflecting the separation of Kwality Wall's (India) and its portfolio of beloved brands.
Following this special session, the HUL share price will be officially adjusted to mirror the demerger. It is important to note that the demerger itself was effective from December 1, 2025. The record date of December 5 is specifically for ascertaining which shareholders are eligible to receive shares in the newly formed ice cream entity.
What Brands Are Moving to the New Entity?
As per the approved scheme of arrangement, HUL will transfer its entire ice cream portfolio to the newly created separate company. This portfolio includes some of the most popular frozen dessert brands in the Indian market:
- Kwality Wall's
- Cornetto
- Magnum
- Feast
- Creamy Delight
This strategic demerger allows HUL to sharpen its focus on its core FMCG segments while enabling the ice cream business to operate with dedicated management and resources for accelerated growth.
Implications for Shareholders and the Market
The demerger represents a major event for HUL's investors. Shareholders who are on the company's register as of the record date, December 5, 2025, will be entitled to receive shares in the demerged Kwality Wall's (India) entity in the proportion outlined in the scheme. The market will closely watch the price discovery in the special session, as it sets the benchmark for HUL's valuation in its new structure.
This move is seen as part of a broader trend where large conglomerates unlock value by separating high-growth but distinct business units. The success of this demerger will be closely monitored by the corporate sector and investors alike, setting a potential precedent for similar actions in the future.
