Particle.news
Download on the App Store
3 ARTICLES
·
2mo ago

HUL’s Kwality Walls Spin-Off Takes Effect With December 5 Record Date

Brokerages point to a February listing near 5x sales for the standalone unit.

The company board of HUL had approved to spin-off or demerge its ice-cream business in November 2024. Kwality Walls (India) owns popular brands like 'Cornetto' and 'Magnum' in India.
Kwality Walls reported an Ebitda margin of 7.1 per cent in FY25, which compressed to breakeven in H1FY26, well below Vadilal’s 18.5 per cent and Havmor’s 17–18 per cent.
HUL’s Ice-Cream Business Demerger: Check the Record Date and What It Means for Your 1:1 Share Allotment

Overview

  • HUL shareholders on the December 5 record date will receive one Kwality Walls (India) share for every HUL share, with allotment slated for December 29.
  • A special pre-open session on December 5 will set HUL’s ex–ice-cream adjusted price, and eligible investors will automatically get KWIL shares credited to their demat accounts.
  • The NSE will temporarily add the demerged entity to multiple Nifty indices at a zero price using a dummy symbol from December 5 until a fair value is established.
  • Nuvama expects the listing around February 2026 at roughly 5x EV/sales, implying Rs 50–55 per share, while the company has not announced a listing date.
  • The ice-cream unit contributes about 3% of HUL revenue and owns brands such as Cornetto and Magnum, with analysts flagging low margins and capex needs even as a recent GST cut offers a category tailwind.