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The National Company Law Tribunal (NCLT), Mumbai Bench, has approved Hindustan Unilever Ltd’s (HUL) scheme of arrangement to demerge its ice cream business into a new entity, Kwality Wall’s (India) Ltd.
According to an exchange filing by HUL, the tribunal sanctioned the demerger order on October 30, 2025, and issued a rectification order on November 6, 2025. The demerger follows Unilever PLC’s decision to separate its ice cream operations globally. HUL’s board had cleared the plan on January 22, citing distinct business models, supply chains, and capital needs.
Under the approved scheme, shareholders of HUL will receive one equity share of ₹1 each in Kwality Wall’s (India) Ltd for every share held in HUL, in a 1:1 ratio.
The tribunal noted that the demerger would allow both companies to sharpen strategic focus and unlock shareholder value, creating an independent, listed ice cream company that manages brands such as Kwality Wall’s, Cornetto, and Magnum.
The NCLT bench, comprising Member (Technical) Prabhat Kumar and Member (Judicial) Sushil Mahadeorao Kochey, directed both companies to comply with all regulatory and statutory requirements, including those of SEBI, stock exchanges, and the Income Tax Department.
The demerged ice cream unit will become part of the newly incorporated Kwality Wall’s (India) Ltd, a wholly owned subsidiary of HUL, until it is listed separately.
Also Read: Indian Hotels keeps double-digit growth target, expects bumper festive quarter
According to an exchange filing by HUL, the tribunal sanctioned the demerger order on October 30, 2025, and issued a rectification order on November 6, 2025. The demerger follows Unilever PLC’s decision to separate its ice cream operations globally. HUL’s board had cleared the plan on January 22, citing distinct business models, supply chains, and capital needs.
Under the approved scheme, shareholders of HUL will receive one equity share of ₹1 each in Kwality Wall’s (India) Ltd for every share held in HUL, in a 1:1 ratio.
The tribunal noted that the demerger would allow both companies to sharpen strategic focus and unlock shareholder value, creating an independent, listed ice cream company that manages brands such as Kwality Wall’s, Cornetto, and Magnum.
The NCLT bench, comprising Member (Technical) Prabhat Kumar and Member (Judicial) Sushil Mahadeorao Kochey, directed both companies to comply with all regulatory and statutory requirements, including those of SEBI, stock exchanges, and the Income Tax Department.
The demerged ice cream unit will become part of the newly incorporated Kwality Wall’s (India) Ltd, a wholly owned subsidiary of HUL, until it is listed separately.
Also Read: Indian Hotels keeps double-digit growth target, expects bumper festive quarter
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