Hindustan Unilever Gets Regulatory Nod to Spin Off Ice Cream Business: Key Details Here

Hindustan Unilever Limited (HUL) has made further progress in its restructuring plan of demerging its ice cream business into a separate entity, Kwality Wall’s (India) (KWIL). The FMCG giant has received regulatory approvals from both the bourses for the spin-off.

"We would like to inform you that HUL has received observation letter with 'no adverse observations' from BSE Limited on 14th May 2025 and observation letter with 'no objection' from the National Stock Exchange of India Limited on 14th May 2025 in relation to the Scheme," the company said in a recent exchange filing.

On Thursday, HUL concluded the trading session at Rs 2,355 price level, marginally up by 0.19% on the NSE.

Demerger Ratio

The demerger of HUL’s ice cream business has been in spotlight since last year, following a similar move by its parent company, Unilever, which separated brands like Ben & Jerry’s and Magnum.

Earlier this year, the domestic FMCG giant announced that, under the demerger arrangement, shareholders will receive shares of Kwality Wall’s India Ltd. (KWIL) in a 1:1 ratio, meaning one KWIL share for every HUL share held.

"KWIL will be a leading listed ice cream company in India, with an experienced management equipped with greater focus and flexibility to deploy strategies suited to its distinctive business model and market dynamics, thus realising its full potential," the FMCG giant said in a January release.

HUL Share Price

So far this year, the shares of the FMCG giant have remained largely rangebound, albeit in the green territory, witnessing a surge of just over a per cent. However, the stock is down by over 29% from its 52-week-high price level of Rs 3,035 on the NSE.

During the last 6 months, the HUL shares have remained in red as faltering demand in urban areas continued to be a pain point for the firm.

In the recent quarter's results, the company's management has lowered its guidance for margins to 22-23% from 23-24% owing to a subdued demand picture.

Despite reporting in-line Q4 figures, the revised margin guidance took the better of investor sentiment, eventually leading to a drop in HUL's share price post result announcement.