Kwality Wall's shares settle at 27% discount on debut day after demerger from Hindustan Unilever

Kwality Wall’s (India) listing ceremony at BSE

• Kwality Wall's India lists on NSE after demerger from HUL
• HUL shareholders received 1:1 shares in the ice cream business
• Kwality Wall's to be included in Nifty 50 index from December 5

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The shares of Kwality Wall's (India) made their much-anticipated market debut on February 16, listing at Rs 29.80 apiece on NSE. This marks a discount of 25.87 percent over the indicative price of Rs 40.20 apiece.

The stock debuted with a market capitalisation of Rs 7,001.78 crore. This comes after the ice cream business was demerged from FMCG major Hindustan Unilever (HUL).

The stock dropped further, falling around 2 percent to close at Rs 29.20 apiece on its debut day. This marks a discount of 27.36 percent from its indicative price.

On BSE, the stock debuted at Rs 29.90 apiece, marking a lower discount of around 22 percent from the indicative price of Rs 38.15 apiece. The stock closed 1.3 percent lower at Rs 29.51 apiece.

#ListingsAtBSE | Kwality Wall’s (India) Ltd. got listed on BSE.

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Mr. Chitrank Goel - Deputy Managing Director KWIL, Mr. Prashant Premrajka - Executive Director & CFO KWIL, along with Ms. Kamala K, Chief Regulatory Officer, BSE, Mr. Deepak Endley - Head of Establishment and Mr.… pic.twitter.com/01gBtQkG2a — BSE India (@BSEIndia) February 16, 2026

The shares of the HUL adjusted to the demerger in December last year, opening at Rs 2,422 apiece on NSE on December 5. This marked a fall of nearly 2 percent (Rs 40.2 apiece) from the previous closing price of Rs 2,462.20 apiece.

Magnum makes open offer for 26% stake in Kwality Wall's:

In an exchange filling, Kwality Wall's announced that its India parent The Magnum Ice Cream Company is set to acquire 26 percent stake in the company through an open offer at Rs 21.33 apiece. This implies a 28 percent discount from today's opening price.

About HUL-Kwality Wall's demerger:

Earlier in November 2024, HUL approved the demerger of the ice cream business, which operates popular brands including 'Kwality Wall's', 'Cornetto' and 'Magnum'. National Company Law Tribunal (NCLT) approved the demerger scheme on October 30.

The ice cream business forms 3 percent of HUL's total yearly turnover, contributing Rs 1,800 crore to the total revenue.

ICICI securities said that the ice cream business will likely be valued at Rs 9,500 crore ($1.06 billion) to Rs 11,900 crore. It values per share of the upcoming demerged entity at Rs 40-50.

Demerger ratio:

The share entitlement ratio was set at 1:1. This means that every shareholder of HUL will receive one share of the ice cream business for every share of the FMCG major they own, as on the record date.

Record date:

The allotment date was fixed at December 29. The record date to determine the eligibility of the shareholders set to receive the free shares was set on December 5. This means that those HUL shareholders whose names appear in the register of members as on the record date will be entitled to receive free shares of KWIL as part of the demerger.

Kwality Wall's shares to be added to Nifty 50:

The National Stock Exchange (NSE) on November 28 had announced that Kwality Wall's India will be included in the Nifty 50 index from December 5. The stock exchange conducted a special pre-open session for HUL on December 5, ahead of the FMCG major’s planned demerger of its ice-cream business into Kwality Wall’s India.

As part of the index adjustments, the demerged entity was briefly added to 35 Nifty indices at a zero price, using a dummy symbol 'DUMMYHDLVR'.

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