If you hold shares of Hindustan Unilever (HUL), your portfolio is about to get a little sweeter. The FMCG giant is officially spinning off its famous ice cream division, home to brands like Cornetto, Magnum, and Kwality Wall’s, into a separate listed entity called Kwality Wall’s (India) Limited (KWIL).
For investors, this is a major value-unlocking event. But how does it work? Will you get free money? And why will the HUL share price drop on Friday? Here is your complete HUL demerger blueprint, simplified.
The “Pizza Analogy”: Understanding the Split
Many investors are asking if this demerger means “free money.” The answer is: Not exactly, but it is beneficial.
Think of HUL as a large, 8-slice pizza that costs ₹2,500.
- The Setup: The ice cream business is one slice of that pizza.
- The Event: On Friday, HUL takes that “ice cream slice” off the main tray and puts it on a separate plate for you.
- The Result: You now have two plates. The main pizza (HUL) is slightly smaller (price drops), and you have a new separate slice (Kwality Wall’s).
You still own the same total amount of “food,” but now you can choose to sell the ice cream slice or the rest of the pizza separately in the future.
The Blueprint: Key Numbers & Dates
Mark these dates in your calendar to ensure you do not miss out on the entitlement.
- The Entitlement Ratio: 1:1. For every 1 share of HUL you own, you receive 1 share of Kwality Wall’s (KWIL) for free.
- Last Date to Buy: Thursday, December 4, 2025. You must own HUL shares by the market close on this day to be eligible.
- Record Date: Friday, December 5, 2025. On this day, HUL will trade ex-demerger (without the ice cream value).
- Share Allotment Date: December 29, 2025. This is the date when the new Kwality Wall’s shares will technically be allotted to eligible shareholders.
- Listing Timeline: The new KWIL shares are expected to list on the BSE and NSE in Q4 FY26 (Jan-Feb 2026).
(Source: NSE)
What is the New Share Worth?
While the market will determine the final price, analysts have crunched the numbers.
- Projected Price: Brokerage firm Nuvama estimates the fair value of Kwality Wall’s shares to be between ₹50 and ₹55 per share.
- Market Cap: This valuation pegs the new company at an approximate market capitalisation of ₹1,200 – ₹1,500 crore.
- Financial Health: The long-term growth story remains intact with a robust CAGR of 12.6% in sales on H1FY26. However, investors should note some short-term pressure. While sales grew by 4.5% in H1FY26, the EBITDA margin compressed to zero during this period. This temporary dip is attributed to high cocoa inflation, supply chain investments, and the one-time costs of setting up standalone operations.
(Source: NSE, Livemint)
The “Dummy” Stock in Nifty 50
In a rare move to maintain index stability, the National Stock Exchange (NSE) will temporarily include Kwality Wall’s in the Nifty 50 index starting December 5, 2025.
- Ticker: It will likely appear under a dummy symbol (e.g., DUMMYHDLVR).
- Price: This dummy stock will hold a constant value (derived from the price difference on Ex-Date) until the actual Kwality Wall’s stock lists in Jan-Feb 2026.
- Regulatory Timeline: The listing schedule is governed by SEBI norms, which mandate that the company must list and commence trading within 60 days of receiving final approval from the NCLT. This statutory window aligns with the expected market debut in January or February 2026.
(Source: NSE, Livemint)
Deadline Alert: How to Secure Your Free Shares
- For Existing Shareholders: Do nothing. If you hold HUL on Friday, the new shares will automatically be credited to your Demat account. Note that your HUL P&L might show a “loss” on Friday because the share price will adjust downwards. This is normal; the “loss” is recovered when the new KWIL shares appear.
- For New Buyers: If you want the new Kwality Wall’s shares, you must buy HUL before 3:30 PM on Thursday, December 4. Buying on Friday will get you HUL at a cheaper price, but no free ice cream shares.
(Source: NSE, Livemint)
The Bottom Line: A Sweet Deal for the Long Term
This demerger acts as a textbook example of value unlocking. By separating the capital-hungry and cold-chain-intensive ice cream business from the steady FMCG mothership, HUL is allowing both entities to pursue their own independent growth paths.
For the investor, it is a win-win scenario. You retain your ownership in the stable and defensive HUL stock while gaining a “free” entry ticket into a high-growth consumption story with Kwality Wall’s. The key now is patience. Investors should hold through the consolidation phase and watch for the listing in early 2026 to see the full value unfold.
Disclaimer: Investments in the securities market are subject to market risks, read all the related documents carefully before investing. This content is purely for information purpose only and in no way to be considered as an advice or recommendation. The securities are quoted as an example and not as a recommendation.
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