Hindustan Unilever Limited (HUL) has announced its plans to list its demerged ice cream business on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE)
HUL ice cream business on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). This decision was made during a board meeting held on January 22, where the company announced a 1:1 share ratio for its existing shareholders.
According to an official filing, HUL informed that shareholders of the FMCG giant will receive one equity share of the newly formed entity for every share they currently hold in HUL. The demerged entity, Kwality Wall’s (India) Limited, will function as an independent, publicly listed company once the process is completed.
The company’s board initially approved the demerger in November 2024, following a recommendation by an Independent Committee established in September 2024.
The committee highlighted that the ice cream business, which includes popular brands like Kwality Walls, Cornetto, and Magnum, operates on a unique model. It necessitates specialized cold chain infrastructure and distinct distribution channels, setting it apart from the rest of HUL’s operations.
In its filing, HUL stated, “For every 1 (one) equity share of face value of Re. 1 fully paid up held in the demerged company, 1 (one) equity share of face value of Re. 1 credited as fully paid up will be issued in the resulting company.”
The demerger is in line with the global strategy of HUL’s parent company, Unilever PLC, which has previously announced its intention to separate its ice cream business worldwide.
The turnover of the ice cream business for the year ending March 31, 2024, was Rs 1,595 crore, accounting for 2.7 percent of the company’s total standalone turnover for the same period, as stated in a company release.
Hindustan Unilever shares closed slightly lower on the NSE on Wednesday, finishing at Rs 2,340, a decrease of 0.021 percent.
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