HUL Gets Green Light from BSE, NSE for Kwality Wall’s Demerger Scheme

Hindustan Unilever Limited (HUL) has received “no adverse observations” from both the BSE and NSE regarding its proposed scheme of arrangement to demerge its ice cream business into Kwality Wall’s (India) Limited (KWIL). This regulatory milestone paves the way for the next phase of statutory and shareholder approvals, bringing HUL closer to unlocking value through the creation of a focused, standalone ice cream company.

 

Regulatory Clearance:

The BSE and NSE have issued “no adverse observations” on HUL’s scheme of arrangement, a crucial step for the demerger process to proceed to the National Company Law Tribunal (NCLT) and other statutory approvals.

 

Scheme Details:

Under the approved plan, HUL will demerge its ice cream business-including brands like Kwality Wall’s, Cornetto, and Magnum-into KWIL, a wholly-owned subsidiary incorporated on January 10, 2025.

 

Shareholder Benefit:

For every one HUL share held, shareholders will receive one equity share in KWIL, ensuring a direct stake in the new ice cream-focused entity.

 

Listing Plans:

Post-demerger, KWIL will be listed independently on both BSE and NSE, allowing investors to participate directly in India’s fast-growing ice cream market.

 

Strategic Rationale:

The move is designed to provide greater focus and flexibility for the ice cream business, enabling tailored strategies, operational agility, and accelerated growth in a competitive sector.

 

Financial Snapshot:

HUL’s ice cream business contributed ₹1,595 crore in revenue for FY24, accounting for 2.7% of the company’s standalone turnover.

 

This demerger is expected to unlock shareholder value, sharpen market focus, and position both HUL and KWIL for long-term growth in their respective domains.

 

Source: HUL Scheme of Arrangement, Exchange4Media, Goodreturns, Bajaj Broking