From sweet to sour: Kwality Wall’s shares melt 26% on market debut

The stock was listed at Rs. 29.80 per share on the National Stock Exchange, marking a 25.87 percent discount to its last discovered price of Rs. 40.20.

After the weak opening, the stock rose 5 percent to hit its upper price band of Rs. 31.29. However, it continued to trade at a 22.16 percent discount compared to the indicative price.

The listing follows the demerger of the ice cream business from Hindustan Unilever, part of a global restructuring announced by Unilever in 2024.

Unilever had said it would separate its entire ice cream division into an independent, publicly listed entity as part of efforts to streamline its business and unlock value.

The demerged ice cream portfolio includes major brands such as Kwality Wall’s, Magnum, Cornetto, Ben & Jerry’s, and Wall’s.

Impact in India

• In India, Kwality Wall’s is currently operated by Hindustan Unilever Limited (HUL), Unilever’s Indian subsidiary.
• The ice cream business of HUL is expected to be separated into a new listed entity.
• Shareholders of HUL will likely receive shares in the new ice cream company, depending on the final structure.

Why Unilever is doing this

Unilever wants to:

• Focus on faster-growing, higher-margin segments like beauty, personal care, and health
• Unlock value from the ice cream business
• Allow the ice cream unit to operate independently with its own strategy