Magnum's Rs 1,303 Cr Open Offer for Kwality Walls Shares

The Magnum Ice Cream Company has announced a mandatory open offer to acquire a 26% stake from public shareholders of the newly listed Kwality Walls (India) Limited. This move, valued at approximately Rs 1,303 crore, follows Magnum's acquisition of a majority stake from Hindustan Unilever (HUL) and coincides with Kwality Walls' debut on the Indian stock exchanges on February 16, 2026.

Details of the Mandatory Open Offer

In a filing with the stock exchanges, it was confirmed that The Magnum Ice Cream Company HoldCo 1 Netherlands B.V., along with persons acting in concert, will make an offer to buy up to 61.08 crore equity shares. The offer price has been fixed at Rs 21.33 per share. The aggregate consideration for the open offer, if fully subscribed, will amount to Rs 1,303.04 crore. This step is a regulatory requirement under the Securities and Exchange Board of India (SEBI) Takeover Regulations, triggered by an acquisition of more than 25% of a listed company's voting rights. Kotak Mahindra Capital Company has been appointed as the sole manager for this transaction.

The Preceding Stake Acquisition

The open offer was necessitated by a prior transaction dated June 25, 2025. On this date, Magnum entered into a share purchase agreement with seven Unilever group entities to acquire a 61.9% stake in Kwality Walls. This controlling stake, comprising 145.44 crore equity shares, was purchased for a total consideration of approximately Rs 2,997 crore (EUR 278.55 million). This strategic acquisition gave Magnum management control over the iconic ice cream business, setting the stage for the mandatory public offer.

Kwality Walls' Journey: From HUL to Public Listing

The recent developments are the culmination of a significant corporate restructuring initiated by Hindustan Unilever. HUL decided to demerge its ice cream business, which includes popular brands like Kwality Wall's, Cornetto, and Magnum, into a separate entity. The scheme of arrangement received approval from the National Company Law Tribunal (NCLT) and became effective on December 1, 2025. Shareholders of HUL as of the record date, December 5, 2025, were allotted one share of Kwality Walls (India) Limited for every one share held in HUL. This move created India's first pure-play listed ice cream company, allowing for a more focused business approach.

Stock Market Debut and Performance

Kwality Walls (India) Limited commenced trading on the BSE and NSE on February 16, 2026. However, the market debut was subdued. On the National Stock Exchange (NSE), the stock listed at Rs 29.80 per share, a discount of 25.87% against the indicative price of Rs 40.20. The stock closed its debut session at Rs 29.20. The listing on the Bombay Stock Exchange (BSE) was at Rs 29.90. The open offer price of Rs 21.33 represents a significant discount to its listing price, a key factor for public shareholders to consider.

Projected Shareholding Structure

The transaction will significantly consolidate Magnum's ownership in Kwality Walls. The table below illustrates the change in shareholding.

This potential increase to an 87.9% stake would give Magnum substantial control over the company's future direction and strategy.

Future Outlook and Regulatory Stance

The acquirer has explicitly stated that there is no intention to delist Kwality Walls from the stock exchanges following the open offer. This ensures that the company will remain publicly traded, providing liquidity for minority shareholders. The focus for the new management will likely be on leveraging the strong brand equity of Kwality Walls, expanding its market reach, and driving operational efficiencies in a competitive market. For investors, the key will be to monitor the new owner's strategic initiatives and their impact on product innovation and financial performance in the Indian ice cream sector.

Conclusion

The mandatory open offer by Magnum is a pivotal event for Kwality Walls, marking a clear transition in ownership after its demerger from HUL. The move solidifies Magnum's control and sets a new strategic course for one of India's most recognized ice cream brands. As Kwality Walls embarks on its journey as a standalone listed entity, its performance under the new leadership will be closely watched by the market and its public shareholders.