Hindustan Unilever is carving out its ice-cream division into a separate listed company called Kwality Wall’s (India) Limited. This move separates two different businesses that have been operating under the same umbrella. HUL’s core FMCG categories (home care, beauty & personal care, foods) and its ice-cream portfolio that includes Kwality Wall’s, Cornetto, and Magnum.
With this scheme of arrangement, HUL will continue as the main FMCG company, while the ice-cream business will run independently with its own cold-chain network, distribution model, and brand strategy. You can find more details here.
What this means for shareholders
If you hold HINDUNILVR shares, you will receive an equal number of Kwality Wall’s shares, meaning 100 HINDUNILVR shares today will give you 100 Kwality Wall’s shares after the separation.
The record date to determine eligible shareholders is December 5, 2025.
If you buy HUL on or before December 4, 2025, you will be entitled to receive shares of Kwality Wall’s (KWIL).
Trading on the record date
On December 5, 2025, HUL will undergo price discovery in a special pre-open session from 9 AM to 9:45 AM. Only order placement, modification, and cancellation are allowed during this window. Matching happens at the end, and regular trading resumes from 10 AM to 3:30 PM.
F&O Contract Impact
All existing F&O contracts expiring in December, January, and February will expire on December 4, 2025. These contracts will be settled via physical settlement, and applicable delivery margins will apply as per our physical settlement policy .
Note: The expiry date shown on Marketwatch will reflect the original expiry, but these contracts will only be available for trading until December 04, 2025.
Fresh contracts with the revised lot size will be introduced again from December 5, 2025, after the pre-open session.
Kwality Wall’s will be listed separately on NSE and BSE once the shares are credited and the exchanges complete the listing process. This usually takes 30 to 45 days, though it may be quicker given HUL’s index weight, and CDSL will notify you once the shares are credited to your demat.
How will your average price change?
When a company splits into separate entities, the overall value of your investment doesn’t change, but your average price is redistributed between the two companies based on a cost-of-acquisition ratio provided later by HUL.
Here’s a simple illustration:
If you bought 100 shares of HUL at Rs. 2,000 each, your total investment will be 200,000 in total.
Later, if the value splits 80:20 between HUL and Kwality Wall’s, it simply means Rs 160,000 of your investment now belongs to HUL and Rs 40,000 belongs to Kwality Wall’s, but the total investment remains the same.
Adjusted average price becomes:
- ₹1,600 for HUL
- ₹400 for Kwality Wall’s
MTF Position Handling
MTF positions will be squared off on December 04, 2025, ahead of the corporate action. To retain your HUL holdings under MTF, please convert them to CNC (delivery) by 4:00 PM on December 03, 2025. More on MTF here .
Taxation
Your holding period for Kwality Wall’s shares will be counted from the day you originally bought HUL, not from the arrangement date.
Tax applies only when you sell the shares:
- Long-term (>12 months): 12.5% on gains above ₹1.25 lakh
- Short-term (<12 months): 20%