Hindustan Unilever (HUL) has decided to spin off its iconic ice cream businesses — Kwality Wall’s, Cornetto, Magnum — into a separate listed company. The most interesting thing? All existing shareholders of HUL are going to get free shares of the new ice-cream company in 1:1 ratio! HUL has declared 5th December 2025 as the record date of demerger, that is, those who hold shares of HUL till this date will be entitled to receive shares of the new company. Analysts believe that about ₹50–55 of HUL’s current share price reflects the valuation of the ice cream business alone. The new company, Kwality Wall’s (India) Ltd., may have a standalone market-cap of around ₹1,200–1,500 crore, with annual revenue around ₹2,000 crore. The ice-cream segment may contribute only 3% of HUL’s turnover, but its growth potential is quite strong — around 15–20% CAGR. Additionally, India’s ice-cream industry is also expected to grow rapidly between 2024–2031. The recent reduction in GST from 18% to 5% is likely to further accelerate the demand. After the demerger, HUL shareholders will get a direct stake in a pure-play, high-growth ice-cream company, which can become a big opportunity for long-term investors. What do you think — will this demerger make a tasty investment? Let us know by commenting below!
