Hindustan Unilever Limited has successfully completed the second tranche of its strategic investment in Transition Sustainable Energy Services One Private Limited (SPV), further strengthening its position in the sustainable energy sector. The FMCG major announced the completion of this acquisition through a regulatory filing.

Investment Details

The company's latest investment demonstrates its continued commitment to sustainable energy initiatives. The key parameters of this acquisition are outlined below:

Strategic Context

This acquisition represents the second tranche of Hindustan Unilever's investment in the SPV, following the initial acquisition of 22.33% stake. The investment was executed in accordance with the terms and conditions outlined in the Transaction Documents.

Regulatory Compliance

The company has fulfilled its disclosure obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015. The acquisition was formally communicated to both BSE Limited and the National Stock Exchange of India Limited through proper regulatory channels.

Financial Impact

The total consideration for the second tranche acquisition amounts to ₹10,26,37,440, representing a significant investment in the sustainable energy sector. This strategic move aligns with the company's broader sustainability objectives and demonstrates its commitment to expanding its presence in renewable energy services.

The completion of this acquisition marks another milestone in Hindustan Unilever's diversification strategy, as the company continues to explore opportunities beyond its traditional FMCG operations while maintaining its focus on sustainable business practices.

Hindustan Unilever Limited (HUL), a leading FMCG company in India, has successfully completed the demerger of its ice cream business to Kwality Wall's (India) Limited (KWIL). Following the completion, the company has issued detailed guidance to shareholders regarding the apportionment of acquisition costs for their shareholdings.

Demerger Completion Details

Kwality Wall's (India) Limited has officially completed the share allotment process following the approved demerger scheme. The Board of KWIL, at its meeting held on December 12, approved the allotment of shares to eligible HUL shareholders.

Cost Apportionment Guidelines

HUL has provided shareholders with specific guidance on apportioning their total cost of acquisition between HUL and KWIL shares post-demerger. The apportionment ratio has been determined based on the net worth of HUL and the net assets of the Ice Cream Business Undertaking as of November 30.

Practical Example

For shareholders who purchased 1,000 HUL shares at ₹400.00 per share (total cost ₹4,00,000.00), the cost apportionment would be:

Regulatory Compliance and Tax Implications

The demerger has been structured in accordance with Section 2(19AA) of the Income Tax Act, 1961. Under Section 47(vid) of the Act, the allotment of KWIL equity shares will not be regarded as a transfer. Additionally, as per explanation 1(i)(g) to Section 2(42A) of the Act, the date of acquisition of HUL equity shares will be deemed to be the date of acquisition for KWIL equity shares.

Corporate Structure Changes

As part of the demerger process, KWIL's Board has approved the cancellation and reduction of its entire pre-scheme paid-up share capital comprising 5.00 crore fully paid-up equity shares of ₹1.00 each, which was entirely held by HUL. Consequently, KWIL has ceased to be a wholly-owned subsidiary of Hindustan Unilever with effect from December 12.

Listing and Governance Structure

KWIL will take necessary steps to obtain listing and trading permission for the allotted equity shares from BSE Limited and National Stock Exchange of India Limited. The newly allotted equity shares will remain frozen until listing and trading permission is granted by the stock exchanges. The company has established statutory committees required for a listed company and appointed senior managerial personnel to support its operations as an independent entity.