FMCG major HUL took a step ahead towards listing its demerged ice cream business on the BSE and the National Stock Exchange (NSE). The move was approved during a board meeting held on January 22 with the company announcing a 1:1 share ratio for its existing shareholders.

In an exchange filing, HUL informed that shareholders of the FMCG major will receive one equity share of the newly formed entity for every share they hold in HUL. The demerged entity, Kwality Wall’s (India) Limited, will operate as an independent, publicly listed company upon the completion of the process

HUL announced earlier this month that it had incorporated a new subsidiary Kwality Wall’s for the proposed demerger of the ice cream business of the company.

Kwality Wall’s (India) Ltd has been incorporated “for the purpose of the proposed demerger of the company’s ice cream business, which is currently under evaluation by the Board of the company,” the FMCG major said in a regulatory filing.

HUL will own 100 per cent of the issued and subscribed share capital of KWIL.

Earlier on November 25, 2024, HUL approved the demerger of the ice cream business, which owns brands like Kwality Wall’s, Cornetto and Magnum into an independent listed entity.

The existing shareholders of the FMCG major will receive shares in the new entity in proportion to their shareholding in HUL, it had said.

The board of HUL decided to de-merge the ice cream business, based on the recommendation of the Independent Committee, which was formed by the FMCG major earlier in September 2024.

The Independent Committee said the ice cream business has a different operating model, including cold chain infrastructure and a distinct channel landscape, which limits synergies with the rest business of the company.

Earlier this year, HUL’s parent entity, Unilever PLC, had expressed its intention to separate its global ice cream business across jurisdictions.

For the financial year ended March 2024, HUL’s revenue from the sale of products was ₹59,579 crore.

HUL reported a 19.18 per cent rise in consolidated net profit at ₹2,989 crore in the December quarter.

The company had posted a consolidated net profit of ₹2,508 crore in the same quarter last fiscal year, Hindustan Unilever Ltd said in a regulatory filing.

Consolidated total income in the third quarter of the ongoing fiscal year was at ₹16,050 crore as against ₹15,781 crore in the year-ago period.