The stock saw incessant selling with over 3 crore shares changing hands on the NSE around 1:40 pm.
Kwality Wall, which was demerged from FMCG major Hindustan Unilever Ltd (HUL), listed on Monday at Rs 29.80, implying a 26% discount from the ex-demerger price of Rs 40.20.
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Kwality Wall operated HUL’s ice-cream business and was demerged to unlock the value of that business. The listing comes after HUL received approvals from both BSE and NSE for 2,34,95,91,262 equity shares of the standalone entity, marking the formal culmination of one of the company’s most significant portfolio restructurings in recent years.
The hive-off became effective on December 1 last year, with December 5 fixed as the record date to determine eligible shareholders. Under the approved scheme, investors holding HUL shares as of that date received one share of Kwality Wall’s for every share held, paving the way for India’s first pure-play listed ice-cream company to enter the public markets.
Also read: Mutual funds slash stakes in 9 of 10 IT stocks but Rs 4 lakh crore still at playIn a separate exchange filing earlier in the day, the company said The Magnum Ice Cream Company HoldCo 1 Netherlands B.V. has launched an open offer to acquire up to 26% of the company’s voting share capital. The offer price has been fixed at Rs 21.33 per share, with Kotak Mahindra Capital Company Limited appointed as the manager to the open offer.
Institutional investor Life Insurance Corporation of India (LIC) has acquired a 6.62% stake (15.56 crore) in the company.
Domestic brokerage estimates had earlier indicated a potential valuation of Rs 50–55 per share, reflecting the category’s seasonal nature and relatively lower margin profile. While a reduction in GST on ice cream from 18% to 5% is expected to support affordability and demand, the business continues to face challenges tied to seasonality and profitability.
SBI Securities remains ‘Neutral’ on the stock.
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