FMCG major Hindustan Unilever share price is seeing smart gains after the company announced key dates for the long-planned split of its ice-cream business. How will this change the holdings for existing shareholders starting December?
Let’s take a look the six major changes every investors need to know ahead of this demerger-
HUL demerger: Record date fixed for share eligibility
The company has announced December 5, 2025, as the record date. This means investors holding HUL shares on that day will qualify to receive shares in the newly formed Kwality Wall’s (India) (KWIL).
The record date decides who gets the new shares after the demerger.
HUL demerger: Demerger takes effect on December 1
The company has stated that the demerger becomes effective from December 1, 2025. This is the official date when the ice-cream business legally separates from HUL.
HUL said in its filing that the Scheme “will come into effect from 1st December, 2025,” following the fulfilment of all conditions, including submissions to the Registrar of Companies and approvals linked to the National Company Law Tribunal (NCLT).
HUL demerger: Shareholders will get Kwality Wall’s (India) shares in a 1:1 ratio
Every eligible investor will receive –
- 1 share of Kwality Wall’s (India) (KWIL) for every 1 HUL share held
- Both shares will have a face value of Rs 1.
This is called the share entitlement ratio, fixed at 1:1.
HUL demerger: New listed ice-cream company to be created
The demerger will result in a standalone, publicly listed ice-cream company that will house well-known brands such as –
- Kwality Wall’s
- Cornetto
- Magnum
The National Company Law Tribunal (NCLT) approved the arrangement in October 2025, followed by a rectification order on November 6.
The plan is part of Unilever PLC’s global strategy to separate its ice-cream vertical into independent units across markets.
HUL demerger: Why HUL is splitting the business
Now, many might be wondering why the company is splitting its business. HUL said the ice-cream unit operates with a different business model, supply chain structure, and capital requirement compared to its other categories.
By separating the unit, both businesses can run with their own plans, management, and financial focus areas.
The tribunal also noted during the approval process that the split would allow the two entities to “sharpen strategic focus and allocate capital more effectively”.
HUL demerger: Board changes announced alongside the demerger
HUL has also made a board-level announcement. The company has appointed Bobby Parikh as an Independent Director for a five-year term starting December 1, 2025.
He will also serve as the Chairman of Risk Management Committee as well as member of Audit Committee
“We are delighted to welcome Bobby to the HUL Board as an Independent Director. His experience, combined with expertise in financial strategy and regulatory frameworks, has helped organisations steer complex transformative business changes. We look forward to his insights and contributions in the Company’s next phase of growth,” he added.
HUL share price
HUL’s share price has delivered a negative return of 7% over the last one month. However, the stock is up nearly 4% so far in 2025.