Kwality Wall’s to List on BSE and NSE on February 16 After HUL Ice Cream Spin-Off

India’s leading fast-moving consumer goods company, Hindustan Unilever Limited (HUL), is moving ahead with the independent listing of its ice cream business, Kwality Wall’s, following the completion of a court-approved demerger. The newly separated entity will commence trading on both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE) on February 16.

The development marks a significant restructuring step aligned with parent company Unilever’s global strategy to carve out its ice cream operations into a standalone business.

Court Approval Clears Path for Separation

The demerger scheme received clearance from the National Company Law Tribunal (NCLT) in late October 2025, formalising the separation of HUL’s ice cream portfolio into an independent company. The business includes well-established brands such as Cornetto, Magnum, and Kwality Wall’s.

HUL’s board had originally approved the spin-off in November 2024 as part of a broader structural review. The move reflects the distinct operational model of the ice cream segment compared to HUL’s core home and personal care businesses.

Shareholder Entitlement and Key Dates

Under the approved scheme, shareholders were allotted shares in the newly formed ice cream entity in a 1:1 ratio. Investors holding one share of HUL as of the record date became eligible to receive one corresponding share in the demerged company.

The record date was fixed in early December, with allotments completed later that month. Eligible shareholders automatically received shares in the new company without additional consideration.

Why the Ice Cream Business Was Spun Off

The ice cream vertical represents a relatively small portion of HUL’s consolidated revenue, contributing roughly 3% to annual turnover, estimated at around ₹1,800 crore.

However, its business dynamics differ substantially from HUL’s mainstream portfolio. Unlike other FMCG categories, ice cream requires a specialised cold-chain distribution network, including temperature-controlled logistics and retail infrastructure. The segment also experiences strong seasonal fluctuations and demands higher capital investment.

Company disclosures have highlighted limited operational synergies between the ice cream business and HUL’s broader categories, prompting the strategic decision to separate the division.

Strategic Implications

The listing is expected to unlock focused management attention and capital allocation for the standalone ice cream company. As an independent entity, it will be better positioned to pursue category-specific growth strategies, innovation, and expansion.

For HUL, the separation allows sharper focus on high-margin core segments while maintaining shareholder value through direct equity participation in the new venture.

The listing on India’s two primary stock exchanges signals the final stage of a restructuring designed to create operational clarity and long-term strategic flexibility for both businesses.