Magnum Announces ₹1,303 Crore Open Offer for Kwality Wall’s India
The Magnum Ice Cream Co., the promoter of Kwality Wall’s (India) Ltd., has launched an open offer to buy up to 26% of the company’s equity from public shareholders. This move is designed to help the company comply with regulatory requirements.
According to a stock exchange filing on Monday, the offer involves 61 crore equity shares priced at ₹21.33 each. This brings the total value of the deal to ₹1,303 crore. Specific dates for the open offer period will be announced at a later time.
Why the Open Offer is Happening
This offer follows a major shift in ownership. Last year, Hindustan Unilever Ltd. (HUL) sold its 61.9% stake in Kwality Wall’s India to Magnum for ₹2,997 crore.
Under SEBI rules, an open offer becomes mandatory when an owner holds more than 25% of the voting shares and has management control. If public shareholders fully accept this offer, Magnum’s total stake in Kwality Wall’s India could reach 87.9%.
The HUL Demerger and Listing
HUL recently separated its ice cream business to list it as an independent company. As part of this demerger, investors who held HUL shares at the close of trading on December 5 were given one share of Kwality Wall’s India (KWIL) for every HUL share they owned.
The ice cream division is a significant business, contributing about 3% of HUL’s annual revenue, which totals roughly ₹1,800 crore.
Current Market Status
Kwality Wall’s India officially began trading on the stock exchanges this Monday. Kotak Mahindra Capital Co. is acting as the sole manager for the transaction.
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