HUL Ice Cream Business Demerger: Hindustan Unilever To List Demerged Entity On Bourses - What Will Shareholders Get?

The board of Hindustan Unilever Limited (HUL) has approved the demerger of its ice cream business, which will be listed on the exchanges as a separate entity.

The HUL board has also approved a scheme between the company and its wholly-owned subsidiary - Kwality Wall's (India).

The company's ice cream business observed a turnover of Rs 1,595 crore for the fiscal year 2024. This constitutes 2.7 per cent of the total standalone turnover of the firm for the year.

According to HUL, the ice cream business undertaking of the demerged company is proposed to be demerged into the Resulting Company.

The Demerger Ratio

While approving the proposed demerger the firm's board has simultaneously fixed the ratio for the same. Going by the scheme of arrangement, 1 equity share of Kwality Wall's will be allotted for every 1 equity share held in HUL. As the demerger and listing of KWIL takes place, its shareholding will be held directly by HUL shareholders.

This demerger can therefore unlock value for all the shareholders of the demerged company and give them the flexibility to stay invested in the ice cream business undertaking's growth journey.

"The Ice Cream Business Undertaking operates in an attractive high-growth category and has built iconic brands such as ‘Kwality Wall’s’, ‘Cornetto’ and ‘Magnum’ and the Demerger would create a leading listed ice cream company in India," HUL said.

The CEO and MD of HUL, Rohit Jawa said, "Our Ice Cream category is a high-growth business with iconic brands such as ‘Kwality Wall’s’, ‘Cornetto’ and ‘Magnum’, operating in an attractive segment. The demerger will unlock fair value for HUL shareholders and give them the flexibility to stay invested in Ice Cream’s growth journey."