Footwear brand RedTape might be sold for ₹5,000cr
What's the story
Global private equity giants Apax Funds and Advent International are interested in acquiring a majority stake in Indian footwear brand RedTape. The deal could value the company at ₹4,500-5,000 crore. This would be one of the biggest private equity transactions in India's branded footwear sector, amid growing investor interest in consumer-facing family-owned businesses.
Advisory role
Promoters engaging in potential stake sale
The promoters of RedTape have engaged Ernst & Young (EY) to advise them on the potential stake sale. The consultancy firm has already sought non-binding bids for the same. According to reports, the promoters are considering selling all or a major part of their holdings in RedTape. As per December's shareholding pattern on the National Stock Exchange (NSE), these promoters held 71.79% of the company.
Bidding interest
Other interested parties and market growth
Along with Apax Funds and Advent International, Warburg Pincus is also said to be interested in acquiring a majority stake in RedTape. Earlier this month, it was reported that KKR and Blackstone were eyeing the asset as well. The development comes amid growing investor interest in India's footwear market, which is expected to more than double by 2033 from $20.67 billion in 2025 to $47.53 billion, according to IMARC Group data.
Business overview
Company overview and international presence
Founded in 1996 by Rashid Ahmed Mirza and Shuja Mirza, RedTape has over 600 stores across India. The company sells footwear and apparel for men, women, and kids under four brands: RedTape, Mode, Ozark, and Bond Street. It also has a presence in 17 countries including the UK, US, Australia, and UAE.
Financial details
Financial performance and competition
RedTape's revenue grew to ₹2,052.93 crore in FY25 from ₹1,855.97 crore the previous year. However, its profit declined a bit to ₹170 crore from ₹176.24 crore during the same period. The company competes with industry giants like Bata India, Metro Brands, Relaxo Footwear, and Campus Activewear as well as global brands like Nike and Adidas.