RedTape Founders Eye $510M Stake Sale, Court Blackstone, KKR
Overview
Indian footwear brand RedTape's founding family is exploring a majority or full stake sale, potentially valued at around $510 million. Global private equity giants Blackstone and KKR have reportedly been approached by financial advisor Ernst & Young as the Mirzas consider divesting their substantial holding. The move comes as the company navigates a competitive market and recent stock price pressure.
Stocks Mentioned
Founders Seek Exit
RedTape's founding family, the Mirzas, are reportedly seeking to sell a significant portion, or potentially all, of their stake in the Indian footwear and apparel company. The divestment could fetch close to $510 million. Global private equity heavyweights Blackstone and KKR & Co have been contacted by Ernst & Young (EY), acting as the exclusive financial advisor, to gauge interest and solicit non-binding offers.
Valuation and Market Position
The Mirzas are looking to offload at least a majority stake, with some sources suggesting they might consider selling their entire 71.8% holding if the deal terms are attractive. At current market prices, this entire stake is valued at approximately $509.42 million. RedTape operates in a dynamic sector, facing competition from global brands like Nike and Adidas, as well as domestic players such as Bata India and Campus Activewear. The Indian footwear market is projected to grow by 11% annually to $21 billion by 2028.
Investor Interest
Family-run Indian businesses with strong domestic market positions continue to attract foreign investment. EY has actively engaged with potential suitors to explore offers for the Mirza family's stake. The process is confidential, with sources speaking on condition of anonymity.
Financial Performance
While the exact reasons for the potential sale remain undisclosed, RedTape shares have experienced pressure, falling 43% last year. The company reported revenue of $223.91 million in fiscal year 2024/25, an increase of 9.7% from the previous year. However, its profit saw a slight decline of 3.5% to $18.84 million over the same period. RedTape, popular for leather shoes and sneakers, has expanded its product line to include shirts, wallets, and belts, with a retail presence across over 600 stores in India and distribution in 14 countries.
