RedTape founders look to sell majority stake, approach Blackstone, KKR

 Indian footwear firm RedTape's founders are soliciting interest from Blackstone and KKR as they look to sell a majority stake or even their entire holding worth nearly $510 million, according to sources and a document seen by Reuters. 

Launched in 1996, RedTape competes with global players such as Nike, Adidas, Bata India and Campus Activewear in a sector expected to grow 11 per cent annually to $21 billion by 2028, according to market research firm 1Lattice.

 

The founding Mirza family has appointed global consultancy Ernst and Young as the exclusive financial adviser for the divestment of their stake, according to a document dated December that outlines the proposed transaction.

 

 

EY has reached out to private equity firms Blackstone and KKR and Co to explore potential offers for the family’s stake, said two of the three sources. The process is currently at the stage of seeking non-binding indicative offers, one source added. All sources requested anonymity as the matter is confidential.

 

RedTape Managing Director Shuja Mirza and company chairman Rashid Ahmed Mirza did not respond to requests for comment. EY and KKR declined to comment, while Blackstone did not respond to queries.

 

Family-run Indian companies continue to attract foreign investors due to their strong presence in domestic markets. Last year, Singapore state investor Temasek acquired a 10 per cent stake in snack maker Haldiram’s, valuing the company at around $10 billion.

 

Two sources said the Mirza family is looking to sell at least a majority stake, though they may consider selling their entire 71.8 per cent holding if the valuation is favourable. A third source said the family prefers a full exit.

 

At Monday’s closing price, a 50 per cent stake in RedTape would be worth about $355.58 million, while the full promoter holding would be valued at roughly $509.42 million.

 

The reasons behind the planned stake sale were not immediately clear. RedTape shares have remained under pressure since early 2025 and declined 43 per cent last year.

 

Known for its leather footwear, RedTape has expanded into sneakers, apparel and accessories including shirts, wallets and belts. The company operates more than 600 retail stores across India and has a presence in 14 countries, including Australia, the United Kingdom, the United States, Europe and West Asia.

 

RedTape reported revenue of $223.91 million in the 2024–25 fiscal year, marking a 9.7 per cent increase from the previous year. However, net profit declined 3.5 per cent to $18.84 million.