HUL Demerges Ice Cream Business, Details Cost Apportionment

Hindustan Unilever Limited (HUL) has announced the apportionment of acquisition costs for equity shares following the demerger of its Ice Cream Business Undertaking into Kwality Wall's (India) Limited (KWIL). This follows a scheme of arrangement sanctioned by the National Company Law Tribunal on October 30 and November 6, 2025. The scheme became effective on December 1, 2025, and provides for the transfer and vesting of the Ice Cream Business from HUL to KWIL.

Under the scheme, KWIL allotted 2,34,95,91,262 equity shares of Re. 1/- each to HUL shareholders as of the record date, December 5, 2025, at a ratio of one KWIL share for every one HUL share. Shareholders are advised to apportion their total cost of acquisition of HUL shares, with 98.09% allocated to Hindustan Unilever Limited and 1.91% to Kwality Wall's (India) Limited.

For example, a shareholder who purchased 1,000 HUL shares at Rs 400/- per share, totaling Rs 4,00,000/-, will allocate Rs 7,640/- (1.91%) to the 1,000 KWIL shares and Rs 3,92,360/- to the original 1,000 HUL shares. The date of acquisition for KWIL shares will be deemed the same as for HUL shares, and the allotment will not be considered a transfer for tax purposes.