Shares of Hindustan Unilever Ltd (HUL) are trading flat after touching a day’s high of Rs 2,434.80 on 12th November, as the National Company Law Tribunal (NCLT), Mumbai Bench, approved the company’s scheme of arrangement to demerge its ice cream business into a new entity, Kwality Wall’s (India) Ltd.

According to an exchange filing, the NCLT approved HUL’s demerger of its ice cream business on 30th October, 2025, and issued a rectification order on 6th November, 2025. The move follows Unilever PLC’s plan to separate its ice cream division globally. HUL’s board had cleared the proposal on 22nd January, citing different business models, supply chains, and capital requirements.

Under the approved plan, HUL shareholders will receive one equity share of Rs 1 each in Kwality Wall’s (India) Ltd for every HUL share held, in a 1:1 ratio.

The tribunal said the demerger will help both companies sharpen their strategic focus and unlock shareholder value, creating a separate, listed entity to manage brands such as Kwality Wall’s, Cornetto, and Magnum.

For now, the demerged ice cream business will remain under HUL’s wholly owned subsidiary, Kwality Wall’s (India) Ltd, until its independent listing.

At 1:20 PM, shares of HUL were trading 0.20% lower at Rs 2,422.70 on NSE.

Unicorn Signals leverages advanced AI technology to provide you with powerful market predictions and actionable stock scans. Download the app today and 10x your trading & investing journey!