Hindustan Unilever, the largest FMCG company, will be divided into two parts:

News Topical, Digital Desk : Shares of Hindustan Unilever (HUL), the country's largest FMCG company, jumped more than one percent on December 1. This surge in HUL shares came after a significant announcement regarding the company's demerger. Hindustan Unilever has separated its ice cream business and has set December 5 as the record date for the demerger of HUL and Kwality Walls. Existing shareholders of the company will receive one Kwality Walls share for every HUL share, in a 1:1 ratio.

The company has answered some key shareholders' questions regarding the demerger. Let's explain how this demerger will affect existing shareholders.

When will Kwality Walls be listed?

The National Stock Exchange (NSE) announced on November 28 that Kwality Walls India will be included in the Nifty 50 index from December 5. Ahead of the country's largest FMCG company HUL's plan to split its ice cream business into Kwality Walls India, the stock exchange will hold a special pre-open session for HUL on December 5.

Hindustan Unilever said the demerger of its ice cream business, Kwality Walls India (KWIL), and its subsequent listing is aimed at realising the company's full potential. Kwality Walls (India) operates popular ice cream brands such as 'Kwality Walls', 'Cornetto' and 'Magnum'. The National Company Law Tribunal ( NCLT ) approved the demerger plan on October 30.

Record and allotment date and listing

The date for allotment of new shares under the demerger plan has been set for December 29. The record date for determining shareholder eligibility has been set for December 5. HUL stated that the allotment, credit, and listing process of the shares of the demerged Kwality Walls India will be completed on time. As per market regulator SEBI regulations, the shares of the demerged entity must be listed within 60 days of the NCLT's approval of the demerger plan.