Mumbai, December 1, 2025 – Hindustan Unilever (HUL) is set for a landmark demerger of its ice cream business, Kwality Wall’s, as the market prepares for a week of price adjustments, index reshuffles, and changes in derivatives contracts.

The key milestone is December 5, the record date for the scheme of arrangement between HUL and Kwality Wall’s. Shareholders will receive one share of the new company for every HUL share they hold, reflecting a 1:1 entitlement ratio.

Derivatives Update:
All existing HUL futures and options contracts will expire on December 4, a day before the record date. Exchanges will run a special pre-opening session to determine HUL’s adjusted price after the spin-off. Following price discovery, fresh F&O contracts aligned with the new structure will be introduced.

Index Adjustments:
Major index managers, including MSCI and FTSE, will temporarily include Kwality Wall’s at the discovered price on the record date and remove it once the company begins trading. Similarly, Nifty and Sensex will add the spun-off entity as a dummy stock at zero price alongside HUL the day before the record date.

The dummy stock’s price will reflect the difference between HUL’s previous closing price and the discovered price in the special session. It will remain frozen until Kwality Wall’s officially lists.

Listing Process:
The new company’s listing could take up to a month as it secures regulatory approvals. Once trading begins, exchanges will monitor the stock’s movement before removing it from indices. On the NSE, removal occurs after three trading days, provided the stock does not hit its price bands for two consecutive days. On the BSE, only the lower price band is considered.

The week ahead is expected to be critical for traders tracking HUL, as the stock adjusts to one of its most significant restructurings in years, while the market prepares for the debut of a new FMCG entity.