HUL Shares In Focus On Kwality Wall’s Demerger Ex-Date: What Happens Today

Hindustan Unilever Ltd. Shares to Trade Ex-Date for Demerger of Kwality Wall's India Ltd.

The Indian stock exchanges, BSE and NSE, have announced that Hindustan Unilever Ltd. shares will trade ex-date on Friday for the demerger of Kwality Wall's India Ltd. A special pre-open session will be conducted to determine the fair price of HUL shares post-demerger.

Demerger Details

• Share Entitlement Ratio: 1:1, meaning one fully paid-up equity share of face value of Rs 1 in KWIL will be given for every share held in HUL.
• Demerger Date: The special session will be conducted from 9:00 a.m. to 10:00 a.m. to facilitate price discovery by stripping the value of the ice cream business from the main stock.

Nifty 50 Index Update

Kwality Wall’s India will be included in the Nifty 50 index at a constant price for a short while, once the special session is conducted. The 50-stock index will be represented by 51 securities in the Nifty.

• Nifty 50 Index Update: Kwality Wall’s India will be included in the Nifty 50 with a dummy symbol and at zero price, which is essentially the difference between the demerged company's closing price on ex-date and price derived during SPOS.

Background and Future Plans

Hindustan Unilever Ltd. announced the demerger of its ice cream company earlier this year and listed Kwality Wall's India as a separate entity. After the HUL demerger is completed, Kwality Wall's will become an independent company with its equity shares listed on the bourses.

• Demerger Strategy: The demerger of Kwality Walls India aligns with parent company Hindustan Unilever’s global strategy to separate its ice cream operations.
• Unlocking Value: The restructuring aims to unlock value for the ice cream vertical, which is home to brands like Cornetto, Magnum, and Feast.