HUL Share Price Today: Stock Adjusts as Kwality Wall’s Demerger Takes Effect

HUL shares reacted to the demerger of Kwality Wall’s India, opening at Rs 2,422 in a special pre-open session, slightly lower than yesterday’s closing price of Rs 2,462.20.

Following the opening, HUL stock price saw sharper declines, dropping nearly 7% to a low of Rs 2,286.70, reflecting the market’s adjustment for the newly demerged entity.

Market Performance: HUL Adjusts for Kwality Wall’s Demerger

The demerger marks a strategic move for HUL, separating its ice cream business from the core FMCG operations. The market responded quickly, with investors recalibrating valuations to account for the upcoming standalone Kwality Wall’s shares.

• HUL Share Price Today: Opened at Rs 2,422
• Previous Closing Price: Rs 2,462.20
• Intraday Low: Rs 2,286.70

The adjustment reflects the market’s anticipation of the new entity and its independent valuation.

HUL-Kwality Wall’s Demerger: Key Details

The demerger, approved by HUL in November 2024 and sanctioned by the National Company Law Tribunal (NCLT) on October 30, separates the ice cream business, which includes popular brands such as Kwality Wall’s, Cornetto, and Magnum.

Business Contribution

• The ice cream segment forms 3% of HUL’s annual turnover.
• Revenue contribution: Rs 1,800 crore

Valuation of Demerged Entity

• Estimated valuation: Rs 9,500 crore to Rs 11,900 crore
• Estimated share price for Kwality Wall’s India: Rs 40-50 per share

Demerger Ratio

• 1:1 share entitlement ratio
• Every HUL shareholder receives one share of Kwality Wall’s India (KWIL) for each HUL share held on the record date.

Record Date and Allotment

The record date to determine eligibility for the free shares was set on December 5, with the allotment date scheduled for December 29. Shareholders listed in HUL’s register on the record date will automatically receive shares of the demerged ice cream business.

The listing of Kwality Wall’s India shares on stock exchanges will occur in due course, following regulatory requirements. As per SEBI rules, the shares must be listed within 60 days from NCLT approval.

NSE Index Inclusion

The National Stock Exchange (NSE) has also integrated Kwality Wall’s India into its indices.

• Date of inclusion: December 5
• Nifty 50 & Other Indices: Kwality Wall’s added using a temporary symbol ‘DUMMYHDLVR’ at a zero price
• Purpose: Facilitates smooth index adjustment ahead of demerger

The inclusion ensures that the demerged entity will be fully recognised in the index framework once its listing is complete.

Summary

HUL’s demerger of Kwality Wall’s India has reshaped the company’s equity structure, as reflected in the HUL share price today. The ice cream business, contributing Rs 1,800 crore to revenue, will now operate as a separate listed entity.

Investors witnessed the stock adjust quickly, with an opening at Rs 2,422 and a sharp dip to Rs 2,286.70. The 1:1 share entitlement ratio ensures HUL shareholders receive Kwality Wall’s India shares based on the record date.

With NSE index adjustments and listing preparations underway, the demerger is a key milestone for both HUL and its ice cream business. The market now watches as the Kwality Wall’s India shares prepare for their official debut.