Kwality Wall’s shares list at 26% discount after HUL demerger

Shares of Kwality Wall's India Limited (KWIL) made their much-awaited debut on Dalal Street on Monday, following the demerger of the ice cream business from its parent, Hindustan Unilever Limited (HUL) . The debut marks a key milestone for the companies as KWIL becomes India’s first pure-play listed ice-cream company.

Kwality Wall's shares listed at ₹29.80 per share on the National Stock Exchange of India (NSE), a sharp discount of 25.87% to the last discovered price of ₹40.20 apiece. It debuted with a market capitalisation of ₹7,001.78 crore.

On the BSE Limited (BSE), the shares of Kwality Wall's started trading at ₹29.90, down 21.62% from the last discovered price of ₹38.15 per share.

Meanwhile, shares of HUL were trading 0.14% higher at ₹2,308.35, with a market capitalisation of ₹5.42 lakh crore.

When Hindustan Unilever Ltd went ex-demerger on December 5, shares of Kwality Wall's were included in the Nifty50 as a temporary “dummy” security at a zero price to maintain index continuity during the restructuring.

Under regulations laid down by the Securities and Exchange Board of India (Sebi), a demerged entity typically has up to 60 days from approval by the National Company Law Tribunal (NCLT), which was granted on October 30, 2025, to complete its listing.

HUL shareholders received KWIL shares in 1:1 ratio

Under the demerger scheme, existing HUL shareholders received shares in a 1:1 ratio — one KWIL share for every HUL share held as of the December 5, 2025 record date.

Post demerger, The Magnum Ice Cream Company, the global entity formed following Unilever’s decision to spin off its ice cream business, holds a 61.9% stake in KWIL.

The listing follows Unilever’s global strategy to separate its ice cream operations, which include flagship brands such as Cornetto and Magnum, from its core fast-moving consumer goods (FMCG) portfolio. As an independent entity, Kwality Wall’s India now operates with its own dedicated management team and board, allowing it to focus exclusively on the evolving dynamics of India’s frozen dessert market.

Nuvama positive on ice cream category

According to a recent report by Nuvama Institutional Equities, the demerger of the ice cream business from HUL is expected to unlock significant shareholder value while creating a focused, high-growth standalone entity.

“A separate listed entity will unlock fair value for HUL shareholders and give them the flexibility to stay invested in Ice Cream’s growth journey,” it said.

The report noted that HUL’s ice cream division contributes nearly 3% to its overall turnover but operates in a fast-growing category with estimated revenue of around ₹2,000 crore and a potential growth rate of 15–20% CAGR.

“The demerger of the ice cream business will create a leading listed ice cream company in India, which will have focused management with greater flexibility to deploy strategies suited to its distinctive business model and market dynamics, thus realising its full potential,” Nuvama said in its report.

The demerger is also expected to improve HUL’s profitability, with analysts projecting a 50–60 basis point improvement in EBITDA margins, as the ice cream segment typically operates at lower margins compared to the company’s overall portfolio.

Following the restructuring, existing shareholders will receive shares in Kwality Wall's India Ltd in proportion to their HUL holdings. The move is expected to provide greater operational flexibility and enable dedicated management to focus on the ice cream business’s growth and innovation strategy.

The brokerage remains positive on the category, citing strong brand equity, favourable tax changes, and robust consumption growth trends, which could help the standalone entity realise its full market potential while allowing investors to participate directly in the segment’s expansion.

“We are positive on the ice cream category. It is a high-growth business with iconic brands such as ‘Kwality Wall’s’, ‘Cornetto’, and ‘Magnum’, operating in an attractive category, and has mid- to high-single-digit profitability. Ice cream has seen a GST cut from 18% to 5%,” it said.

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