HUL Demerger: How many shares will you receive and how will this impact F&O contracts?

Synopsis:
Hindustan Unilever is demerging its ice cream business, Kwality Wall’s India, into KWIL with a 1:1 share entitlement for HUL shareholders on December 5, 2025, impacting HUL’s F&O contracts and prompting temporary index adjustments.

This company is in the FMCG business comprising primarily Home Care, Beauty & Personal Care and Foods & Refreshment segments and manufacturing facilities across the country and sells primarily in India is now in the focus ahead of its demerger record date.

With market capitalization of Rs. 5,76,237 cr, the shares of Hindustan Unilever Ltd are currently trading at Rs. 2,451.50 per share, from its previous close of Rs. 2,454.25 per share,

How Many Shares You’ll Get and Record date

Hindustan Unilever (HUL) is demerging its ice cream business, branded as Kwality Wall’s India, into a separate entity called Kwality Wall’s (India) Ltd (KWIL) with the record date set for December 5, 2025. 

Shareholders holding HUL shares on this date will receive one KWIL share for every HUL share owned, on a 1:1 basis, allowing them to hold equity in both the restructured HUL and the new ice cream-focused company. 

After the demerger, Hindustan Unilever (HUL) shareholders will receive 1 KWIL share for every 1 HUL share held. With HUL’s current 2,34,95,91,262 shares outstanding, the new ice cream-focused company KWIL will also have 2,34,95,91,262 shares, all distributed to existing HUL shareholders. 

For example, an investor holding 1,000 HUL shares will continue to hold 1,000 HUL shares in the restructured HUL and receive 1,000 KWIL shares in the new company, allowing them to hold equity in both entities.

How does this impact F&O contracts

December 4, 2025, marks the final trading day for HUL as a combined entity, with all existing futures and options (F&O) contracts expiring on this date to account for the structural change. 

Exchanges will conduct a special pre-open session on the record date (December 5) to adjust HUL’s share price post-demerger, reflecting the value separation, after which new F&O contracts will be introduced for the restructured HUL.​

Major indices like Nifty, Sensex, MSCI, and FTSE will implement temporary adjustments to their compositions to handle the demerger impact. KWIL shares, allotted in demat form only (requiring KYC for physical holders), may take up to a month to list on stock exchanges, after which exchanges will evaluate trading patterns before finalizing permanent index inclusions or removals.

About the company 

Hindustan Unilever Ltd (HUL) is one of India’s largest and most diversified consumer goods companies, with a portfolio spanning personal care, home care, foods, and beverages. Known for iconic brands like Dove, Surf Excel, and Kwality Wall’s, HUL combines strong market presence with innovation and sustainable practices, serving millions of consumers across urban and rural India.

The company reported moderate year-on-year growth in Q2 FY26, with sales rising from Rs. 15,926 crore to Rs. 16,241 crore, up about 2%. EBITDA slightly declined from Rs. 3,787 crore to Rs. 3,726 crore, a 1.6% decrease, while net profit grew marginally from Rs. 2,595 crore to Rs. 2,694 crore, up around 3.9%. Earnings per share (EPS) increased from Rs. 11.03 to Rs. 11.43, reflecting a 4% rise, indicating stable profitability despite modest top-line growth.

It demonstrates strong financial health with a ROCE of 27.8% and ROE of 20.7%, supported by a minimal debt-to-equity ratio of 0.04. The company also maintains a robust dividend payout ratio, reflecting consistent returns to shareholders.

Written by Manideep Appana

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