Hindustan Unilever Limited (HUL) has taken a step ahead towards listing its demerged ice cream business on the BSE and the National Stock Exchange (NSE). The move was approved during a board meeting held on January 22 with the company announcing a 1:1 share ratio for its existing shareholders.
In an exchange filing, HUL informed that shareholders of the FMCG major will receive one equity share of the newly formed entity for every share they hold in HUL. The demerged entity, Kwality Wall’s (India) Limited, will operate as an independent, publicly listed company upon the completion of the process.
The company’s board had initially approved the demerger in November 2024, following a recommendation by an Independent Committee set up in September 2024.
The committee noted that the ice cream business, which includes popular brands such as Kwality Wall's, Cornetto, and Magnum, has a unique operating model. It requires specialised cold chain infrastructure and distinct distribution channels, which differ from the rest of HUL's operations.
HUL approves demerger of ice cream business into an independent listed entity
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 aligns with the global strategy of HUL’s parent entity, Unilever PLC, which earlier expressed its intention to separate its ice cream business across jurisdictions.
The turnover of the ice-cream business undertaking for the year ended 31st March, 2024 was Rs 1,595 crore, representing 2.7 percent of the total standalone turnover of the company for the year ended 31st March, 2024, the company said in a statement.
Shares of Hindustan Unilever ended marginally lower on the NSE on Wedneday, closing at Rs 2,340, down 0.021 percent.
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