Kwality Wall’s India Debuts 26% Below Issue Price, Gains in Intraday Trade

 Shares of Kwality Wall's (India) Ltd on Monday listed at ₹29.80 per share on the National Stock Exchange of India, reflecting a 25.87% discount to the indicative issue price of ₹40.20. However, following early trade, the shares reversed some of these losses and were trading with a 4.87% gain compared to the opening price.

At 11:39 am, Kwality Wall's (India) Ltd shares were quoting at ₹31.25.

The listing gave the company a market capitalisation of ₹7,001.78 crore, following the demerger of the ice cream division from FMCG major Hindustan Unilever.

HUL’s shares had already adjusted for the demerger in December last year, opening at ₹2,422 on December 5, about 2% (₹40.20) lower than the previous closing price of ₹2,462.20.

In November 2024, HUL had approved the separation of its ice cream business, which houses popular brands such as Kwality Wall's, Cornetto and Magnum. The demerger plan received clearance from the National Company Law Tribunal on October 30.

The ice cream segment accounts for roughly 3% of HUL’s annual turnover, contributing around ₹1,800 crore in revenue.

According to an earlier report by ICICI Securities, the business is expected to be valued between ₹9,500 crore ($1.06 billion) and ₹11,900 crore, with the per-share value of the demerged entity estimated at ₹40–50.

The share entitlement ratio was fixed at 1:1, meaning HUL shareholders received one share of the ice cream entity for every share held in the parent company as of the record date.

December 29 was set as the allotment date, while December 5 served as the record date to determine shareholder eligibility for receiving shares of the demerged company.

On November 28, the NSE had announced that Kwality Wall’s India would be included in the Nifty 50 index from December 5 and conducted a special pre-open session for HUL on the same day ahead of the planned spin-off of its ice cream business.