HUL to list demerged ice cream business on BSE, NSE
What's the story
Hindustan Unilever Limited (HUL) has officially announced that it will be separating its ice cream division into a standalone entity. The decision was taken at a board meeting today. The new company will be listed on the Bombay Stock Exchange (BSE) as well as the National Stock Exchange (NSE) once its demerger is complete.
New entity
Kwality Wall's to house HUL's ice cream business
The demerged ice cream business will be run by Kwality Wall's (India) Limited, a fully owned subsidiary of HUL. The company will operate as an independent listed entity after the demerger process is completed. The move is a part of HUL's strategy to streamline operations and focus on core competencies.
Share distribution
HUL announces 1:1 share ratio for new company
HUL has confirmed its shareholders will get shares in the newly formed firm on a 1:1 basis. As per an exchange filing, "For every one equity share of face value of Re. 1 fully paid up held in the demerged company, one equity share of face value of Re. 1 credited as fully paid up will be issued in the resulting company." This ensures existing shareholders retain their stake post-demerger.