RedTape has issued an official clarification regarding recent market speculation about potential ownership changes. The company has categorically stated that no announcement concerning stake sale has been made by its founders.

Official Company Statement

The clarification comes as the company seeks to address any rumors or speculation that may have been circulating in the market regarding potential changes in the founder's shareholding. RedTape's management has emphasized the importance of accurate information flow to maintain transparency with investors and stakeholders.

Market Transparency Initiative

This clarification represents the company's commitment to maintaining clear communication with the investment community. By proactively addressing potential misinformation, RedTape demonstrates its dedication to corporate governance and transparent disclosure practices.

Stakeholder Communication

The company's statement serves to reassure investors and market participants about the stability of the current ownership structure. Such clarifications are crucial in maintaining investor confidence and preventing unnecessary market volatility based on unsubstantiated rumors.

RedTape's prompt response to address market speculation reflects the company's proactive approach to stakeholder communication and its commitment to maintaining transparency in all corporate matters.

RedTape Limited shares experienced a remarkable surge of nearly 16% during Tuesday's trading session on BSE, driven by reports of potential stake acquisition discussions with prominent private equity firms. The fashion and lifestyle brand's stock performance reflects investor optimism about the proposed investment from global financial giants.

Stock Performance and Market Response

RedTape Limited shares demonstrated strong market momentum, with the stock closing at ₹129.95 on BSE, representing an increase of approximately 12% from the previous closing price of ₹116.30. The company currently maintains a market capitalization of ₹7,183.70 crores.

Private Equity Interest and Divestment Process

According to a Reuters report, footwear and apparel brand RedTape is actively evaluating investment proposals from private equity giants Blackstone and KKR & Co. The founding Mirza family is considering selling a controlling stake or potentially their entire shareholding, with the transaction valued at approximately $510 million.

The divestment process has reached a structured phase with the appointment of Ernst & Young as the exclusive financial adviser. EY has approached both Blackstone and KKR to assess their interest in acquiring the family's stake. The process remains in its early stages, with the company currently seeking non-binding indicative bids from potential investors.

Financial Performance Highlights

RedTape demonstrated robust financial growth in Q2 FY26, showcasing strong operational efficiency and market traction. The company's revenue performance and profitability metrics indicate healthy business fundamentals.

The year-on-year revenue increase of 16% from ₹416 crores to ₹492 crores demonstrates the company's ability to expand its market presence effectively. Similarly, net profit growth of 22% from ₹25 crores to ₹28 crores reflects improved cost efficiency, steady margins, and strong retail traction across its network.

Retail Network and Business Model

RedTape operates an extensive retail network spanning across India, with a presence in 20 states and 3 Union Territories. As of Q2 FY26, the company manages a total of 623 stores across various retail formats, demonstrating a diversified and well-distributed network.

The company operates primarily under the "Company Owned and Company Operated" (COCO) model of retailing, providing direct control over customer experience and brand positioning. RedTape has established itself as a comprehensive family fashion destination, offering footwear, apparel, and accessories for men, women, and children across all age groups.

Source: https://tradebrains.in/stock-skyrockets-16-after-kkr-and-blackstone-likely-to-buy-stake-in-the-company/