MUMBAI
:
International personal fairness companies together with Apax Funds and Introduction Worldwide have joined the race to accumulate a majority stake in RedTape, in a transaction that might worth the Indian footwear maker at ₹4,500–5,000 crore (about $500 million), three individuals acquainted with the matter stated on situation of anonymity.
The proposed deal marks one of many largest personal fairness performs in India’s branded footwear house, and comes amid rising investor curiosity within the nation’s consumer-facing family-owned companies.
Talks are at an early stage, and the promoters have mandated EY to advise them on the method, one of many individuals cited above stated, including that the consultancy has sought non-binding bids.
The second particular person stated that the Noida-headquartered firm’s promoters could promote all or a considerable a part of their holdings. The promoters held 71.79% of the corporate, in line with the shareholding sample on the NSE as of December.
“Warburg Pincus might also be part of the fray and compete for almost all stake,” the third particular person cited above stated.
Earlier this month, Reuters first reported on the promoters’ plan to divest their stake, with KKR and Blackstone expressing curiosity within the asset.
RedTape’s shares rose 4.05% to shut at ₹123.83 on Friday on the Nationwide Inventory Change, in comparison with the benchmark Nifty 50’s fall of 0.39%. Over the previous yr, the corporate’s inventory has declined 29.57%. Its market capitalization on Friday was ₹6,845.42 crore.
KKR, EY, Introduction, Warburg and Apax Funds declined to touch upon the matter. RedTape and Blackstone didn’t reply to Mint’s requests for remark until press time.
The event comes on the again of accelerating curiosity from traders in India’s footwear market, which is anticipated to greater than double in eight years to $47.53 billion from $20.67 billion in 2025, in line with a report by the IMARC Group.
Earlier this month, Neeman’s raised ₹35 crore from SNAM Options and present traders Anicut Capital, Enam Investments and Harsh Mariwala-backed Sharrp Ventures. RARA Barefoot, a D2C footwear startup co-founded by Sachin Tendulkar, raised $500,000 from Peak XV Companions in October 2025.
Mint reported in July 2024 that Aqualite Industries was exploring a personal transaction to facilitate an exit for its investor Lighthouse Funds.
The event additionally comes as family-owned companies more and more flip to exterior capital to gas development, professionalize the group and scale up operations.
Over the previous yr, firms together with Haldiram, Iscon Balaji, Balaji Wafers, Theobroma and VIP Industries have seen related strikes whereas HyFun Meals and Ratnadeep Retail are in numerous levels of their fundraising course of, Mint reported.
Retailer footprint
Established in 1996 by Rashid Ahmed Mirza and Shuja Mirza, RedTape has over 600 shops throughout India and caters to footwear and clothes for males, ladies and youngsters. It additionally has a footprint in 17 nations together with the UK, US, Australia and the UAE. It operates 4 manufacturers – RedTape, Mode, Ozark and Bond Road.
The corporate’s income climbed to ₹2,052.93 crore in FY25 from ₹1,855.97 crore within the earlier yr. Revenue narrowed to ₹170 crore from ₹176.24 crore, in line with its annual report.
“The enterprise depends on heavy discounting, and the margins have been thinning through the years,” a senior personal fairness govt stated on situation of anonymity. Although the whole addressable market is large and the expansion potential appears regular, given the big demography of our nation, it makes extra sense for world funds trying to take the model to markets outdoors India, the manager added.
RedTape competes with youngster India, Metro Manufacturers, Relaxo Footwears, and Campus Activewear, in addition to Nike and Adidas.