Archive · 2 Dec 2025
HUL Demerger: Kwality Walls to List in 2026
Hindustan Unilever (HUL) is splitting off its ice-cream business, Kwality Walls, which is expected to list on the stock market in February 2026.
HUL shareholders will receive one share of Kwality Walls for every HUL share they own.
Kwality Walls is expected to be valued at Rs 50–55 per share, which is lower than HUL's valuation.
The new company has strong brands like Magnum and Cornetto and a big cold-storage network.
However, it faces challenges like seasonal sales and needs to invest more in manufacturing and distribution.
The recent GST cut from 18% to 5% on ice cream is expected to make ice cream more affordable and help the business grow faster.
Kwality Walls, HUL's ice-cream business, is expected to list in February 2026 at Rs 50–55 per share, at a 5 times EV/sales multiple, lower than HUL's 9 times.
HUL shareholders will receive one Kwality Walls share for every HUL share held as of the record date, December 5, 2024.
Kwality Walls has strong brands like Magnum and Cornetto, a large cold-chain network, and is expected to benefit from the GST cut to 5%, improving affordability.
The business faces challenges like seasonality, lower margins compared to peers, and needs clarity on future investments in manufacturing and distribution.
Kwality Walls' leadership has been refreshed, with Chitrank Goel appointed as Deputy Managing Director and Prashant Premrajka as CFO, both with extensive experience in the industry.
- Who
- Hindustan Unilever (HUL) and Kwality Walls
- What
- Demerger of Kwality Walls, expected to list in February 2026
- When
- Listing expected in February 2026, demerger effective from December 1, 2024
- Where
- India
- Why
- To create a focused standalone entity for the ice-cream business, leveraging GST benefits and growth opportunities
- Listing Date
- February 2026 (expected)
- Valuation
- Rs 50–55 per share (expected)
- EV/sales Multiple
- 5 times (expected)
- HUL EV/sales Multiple
- 9 times
- Record Date
- December 5, 2024
- Ebitda Margin (FY25)
- 7.1%
- Ebitda Margin (H1FY26)
- Breakeven
- Cold-chain Network
- Over 2,00,000 cabinets
