The much-anticipated corporate restructuring of Hindustan Unilever Limited (HUL) has officially taken effect. The FMCG giant's ice cream business, operating under the Kwality Wall's (India) umbrella, has been formally demerged into a separate, listed entity as of December 1, 2025. This strategic move spins off popular brands like Magnum, Cornetto, Feast, and Creamy Delight into a dedicated, pure-play ice cream company.
Key Dates and Shareholder Entitlement
For investors, the process hinges on several critical dates. The demerger became legally effective on Monday, December 1. However, the record date to determine which shareholders are eligible for shares in the new entity is set for Friday, December 5, 2025. Investors holding HUL shares as of this record date will be entitled to receive equity in Kwality Wall's (India) Limited (KWIL).
The entitlement ratio is straightforward: 1:1. This means for every single share of HUL held, the shareholder will receive one share of KWIL. The company has scheduled December 29, 2025, as the date for the allotment of these new shares. This demerger scheme had previously received the green light from the National Company Law Tribunal (NCLT) on October 30, 2025.
Market Adjustments and Nifty 50 Inclusion
The demerger will trigger significant adjustments in the stock market. Both the BSE and NSE will conduct a special pre-open session on the record date, December 5, to discover the fair price of HUL shares excluding the value of the ice cream business. Following this session, the HUL share price will be adjusted downward to reflect the spin-off.
In a notable development, the National Stock Exchange (NSE) has announced that Kwality Wall's (India) will be temporarily included in the Nifty 50 index from December 5 itself. The new entity will be added to 35 Nifty indices under a provisional ticker, 'DUMMYHDLVR', at a zero price. The price of this dummy security will capture the value difference for index calculation purposes until KWIL shares are officially listed and begin trading.
Analyst Outlook and Listing Prospects
The newly independent Kwality Wall's, which contributed around ₹1,800 crore or 3% to HUL's annual turnover, is entering the market at an interesting time. Analysts point to long-term growth drivers such as the recent reduction in GST on ice cream from 18% to 5%, which could boost affordability and demand for organised players like KWIL.
However, the company's financials show a mixed picture. While it reported a sales CAGR of 12.6% between FY20 and FY25, its EBITDA margin faced pressure, compressing to zero in the first half of FY26 due to high cocoa prices and costs related to establishing itself as a standalone company.
Brokerage firm Nuvama Institutional Equities has estimated an implied valuation for KWIL in the range of ₹1,200 to ₹1,500 crore, which translates to roughly ₹50 to ₹55 per share. They expect the stock to list in February 2026 and remain positive on HUL's core business, maintaining a 'Buy' rating with a target price of ₹3,200. As per SEBI norms, KWIL shares must list and begin trading within 60 days of receiving NCLT approval.
