1:1 Split Of Mega FMCG Soon: HUL Sets Demerger Record Date: Entitlement Ratio, Eligibility & Recommendation

A mega demerger is on the way on Indian stock market! After major companies like ITC and Tata Motors demerged their business, it is now FMCG giant Hindustan Unilever (HUL) turn. On November 19, investors turned majorly into buyers of HUL share price after it fixed the demerger record date. HUL is demerging its ice cream business into a wholly owned subsidiary, Kwality Wall's (India) Limited (KWIL).

Hindustan Unilever Share Price:

At the time of writing, HUL share price traded at Rs 2438 apiece on BSE, up by 1.43% with market cap of Rs 5,72,830.35 crore. The stock is near its intraday high of Rs 2442 apiece.

Hindustan Unilever-Kwality Walls Effective Date:

In its regulatory filing, HUL informed that the effective date of the demerger scheme with Kwality will be on December 1, 2025.

It needs to be noted that this is not the record date for HUL demerger. From December 1st onward, the management and operations will be restructured effectively. A new top management has been formed which will take their roles from December 1st onward.

The new management that will run the demerged business includes Bobby Parikh as an Independent Director on its Board. Parikh is a seasoned advisor with decades of experience guiding businesses through transformations. He is a strategic advisor to many large corporations and holds directorships in, among others, Infosys, Biocon and Indostar Capital.

On his appointment, Nitin Paranjpe, Non-Executive Chairman, HUL, said, "We are delighted to welcome Bobby to the HUL Board as an Independent Director. His experience, combined with expertise in financial strategy and regulatory frameworks, has helped organisations steer complex transformative business changes. We look forward to his insights and contributions in the Company's next phase of growth."

Also, the company has appointed Ritesh Tiwari as an Additional Director (Non-Executive) of the Company with effect from 17th November, 2025.

Hindustan Unilever Demerger Record Date:

After the effective date, HUL fixed the record date on Friday, 5th December, 2025. On the record date, HUL will ascertain the eligible equity shareholders of HUL who will be entitled to be issued equity shares of KWIL pursuant to the Scheme.

Hindustan Unilever Demerger Entitlement Ratio:

As part of the demerger, the Share Entitlement Ratio is of 1:1 --- which means --- one equity share of face value Re.1/- fully paid-up in KWIL for every one equity share of face value Re. 1/- fully paid-up held in HUL.

Hindustan Unilever - Kwality Walls Split Details:

Pursuant to the scheme, one equity share of KWIL will be allotted for every one equity share held in HUL. Upon demerger and listing of KWIL, the entire shareholding of KWIL will be held directly by shareholders of HUL, as per the statement.

Notably, KWIL will be a leading[a] listed ice cream company in India, with an experienced management equipped with greater focus and flexibility to deploy strategies suited to its distinctive business model and market dynamics, thus realising its full potential. Further, the business will continue to be equipped with the portfolio, brand and innovation expertise from the largest global Ice Cream business enabling it to keep winning in the marketplace.

BUY Hindustan Unilever Stock Price?

According to analysts at Geojit, the listing of ice cream division is expected in Q4FY26, ensuring strategic portfolio simplification and capital efficiency benefits.

The analysts took note of HUL's performance during Q2FY26 which was stable due to strong execution abilities, GST adjustments and a moderate seasonal environment.

Thereby, the analysts believe GST cuts are expected to support consumption recovery and improve channel momentum during the festive period. HUL's strategic focus on premiumisation, science-led innovation and digital acceleration continues to reinforce brand leadership across key categories.

"By expanding its e-commerce presence and by using data-led marketing and supply chain digitisation, the company has enhanced execution agility and consumer reach," analysts added.

Lastly, they said, "Portfolio expansion through innovative SKUs across beauty, wellness and home care is expected to drive growth. Hence, we retain our BUY rating on the stock with a revised target price of Rs. 2,776 based on 54x FY27E adjusted EPS."

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