Hindustan Unilever shares adjust at ₹2,422 after adjusting for ice cream biz demerger

Shares of Hindustan Unilever Ltd

. (HUL), India's largest FMCG company, adjusted at ₹2,422 on Friday, December 5, as the stock began to trade adjusted for the demerger of its Ice Cream business. It was a ₹40 difference compared to its closing price on Thursday.

Today was the record date for the demerger of HUL's ice cream business. This means that those who had shares of HUL in their demat account as of Thursday's closing, will be eligible to avail the demerger entitlement. Eligible shareholders of HUL will receive one share of the demerged Kwality Walls, for every one share of HUL that they own.

HUL had announced the demerger of its Ice Cream business in January this year and after regulatory approvals, the demerger took effect from December 1.

Kwality Walls accounts for 3% of HUL's consolidated revenue. The demerged entity will also be temporarily included in the Nifty 50 index from today. HUL had earlier told CNBC-TV18 that the Ice Cream business is between ₹1,800 crore to ₹2,000 crore in size with low margins.

Analysts expect Kwality Walls to be valued between ₹12,000 crore to ₹15,000 crore, which roughly translates to a value between ₹50 to ₹60 per share for HUL.

The Futures & Options (F&O) contracts for HUL expired on Thursday before the record date. A special pre-opening session will now take place today for price discovery on both the exchanges. "The price of the new entity will be the difference of existing entity’s closing price on T-1 and the discovered price," Motilal Oswal's note said.

Shares of HUL are now trading 4.2% lower at ₹2,358, and also below the adjusted price of ₹2,422. The stock is up 6% so far in 2025.