Kwality Wall’s to be added to Nifty 50 from December 5 post-HUL demerger

The National Stock Exchange (NSE) has announced on Friday, November 28, that Kwality Wall's India will be included in the Nifty 50 index from December 5.

The NSE will conduct a special pre-open session for Hindustan Unilever Ltd (HUL) on December 5, ahead of the FMCG major’s planned demerger of its ice-cream business into Kwality Wall’s India Ltd, the exchange said in a circular.

As part of the index adjustments, the demerged entity Kwality Wall’s (India) Ltd will be temporarily added to 35 Nifty indices

at a zero price, using a dummy symbol ‘DUMMYHDLVR.’

The inclusion, which will become effective on December 5, based on the close of December 4, will be executed without any divisor adjustment, in line with Nifty index methodology for handling demergers.

The list spans major benchmarks, including the Nifty 50, Nifty 100, Nifty 200, Nifty 500, Nifty FMCG, Nifty Consumption, Nifty MNC, as well as ESG, Shariah, factor-based, equal-weight, volatility and quality indices.

The NSE said the special pre-open session will help ensure orderly price discovery in HUL shares as they adjust for the carve-out of the ice-cream business into a separate listed entity.

The demerger aligns with Unilever PLC’s global decision to carve out its ice-cream operations into an independent business. HUL’s board had cleared the proposal on January 22, 2025, noting that the ice-cream vertical operates with a distinct business model, supply chain requirements, and capital intensity, warranting a standalone structure.

HUL Q2 Results

HUL reported a net profit of ₹2,694 crore for the September quarter, aided by a one-time gain of ₹273 crore, resulting from the resolution of tax matters between UK and Indian authorities. There was no one-time gain in the base quarter.

Revenue for the quarter stood at ₹15,585 crore on a standalone basis. On a year-on-year basis, the topline was up 0.5%. EBITDA for the quarter declined by 2.3% from last year to ₹3,563 crore. The EBITDA margin for the quarter stood at 22.9%, which is 60 basis points lower from last year.

The management expects the margins to remain to be between 23-24%. It also sees a margin benefit between 50-60 basis points following the demerger of the ice-cream business.