Archive · 14 Dec 2025
HUL Demerger of Ice Cream Business Effective
Hindustan Unilever Limited (HUL) has officially separated its ice cream business into a new company called Kwality Wall’s (India) Limited (KWIL).
This change happened on December 1, 2025.
Shareholders of HUL now own shares in both HUL and KWIL.
They received one KWIL share for every HUL share they had.
The value of their investment is split between the two companies.
HUL shareholders will keep most of their investment value in HUL, while a small part goes to KWIL.
This split is expected to help both companies focus better on their own growth.
Shareholders are advised to consult tax experts to understand how this affects them.
HUL’s ice cream business has been demerged and transferred to KWIL, effective December 1, 2025.
Shareholders received 234.95 crore KWIL shares in a 1:1 ratio based on their HUL shares.
The cost of acquisition for HUL shares is apportioned between HUL (98.09%) and KWIL (1.91%).
The allotment of KWIL shares is not treated as a transfer for tax purposes.
Shareholders are advised to consult tax advisors for individual implications.
- Who
- Hindustan Unilever Limited (HUL) and Kwality Wall’s (India) Limited (KWIL)
- What
- Demerger of HUL’s ice cream business to KWIL
- When
- Effective from December 1, 2025
- Where
- India
- Why
- To allow both companies to pursue distinct growth paths and provide shareholders with direct ownership in both businesses
- Companies Involved
- Hindustan Unilever Limited (HUL) and Kwality Wall’s (India) Limited (KWIL)
- Effective Date
- December 1, 2025
- Record Date
- December 5, 2025
- Shares Allotted
- 234.95 crore equity shares of Re 1 each
- Share Ratio
- 1:1 (one KWIL share for every HUL share held)
- Cost Allocation
- 98.09% to HUL, 1.91% to KWIL
- Tax Implications
- Allotment not treated as transfer; acquisition date same as original HUL shares