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.

Indian footwear manufacturer RedTape 's founding family is exploring a significant stake sale to global private equity giants Blackstone and KKR, with the transaction potentially valued at up to $509.42 million, according to sources and documents seen by Reuters.

Transaction Details and Valuation

The Mirza family, which founded RedTape in 1996, has appointed global consultancy Ernst & Young as the exclusive financial adviser for the divestment of their stake, according to a December document detailing the planned transaction. The family currently holds a 71.8% stake in the company and is exploring options ranging from a majority stake sale to divesting their entire holding.

Ernst & Young has reached out to private equity firms Blackstone and KKR to explore potential offers, with the process currently seeking non-binding indicative offers. While two sources indicated the family is eyeing at least a majority stake sale, they noted the possibility of selling the entire stake if a favorable deal emerges.

Market Position and Growth Prospects

RedTape operates in India's rapidly expanding footwear sector, competing with global giants including Nike, Adidas, Bata India, and Campus Activewear. The Indian footwear market is projected to grow at 11% annually, reaching $21 billion by 2028, according to market research firm 1Lattice.

The company has established a strong retail presence with over 600 stores across India and maintains international operations in 14 countries, spanning Australia, Britain, the United States, Europe, and West Asia. RedTape has diversified its product portfolio beyond its popular leather shoes to include sneakers, shirts, wallets, and belts.

Financial Performance

RedTape's recent financial performance shows mixed results, reflecting broader market challenges:

The company's shares have faced pressure since early 2025, declining 43% in the previous year, which may be influencing the family's decision to explore strategic options.

Industry Context

The potential RedTape transaction aligns with a broader trend of family-run Indian companies attracting foreign investment due to their strong domestic market positions. This follows similar high-profile deals, such as Singapore's state investor Temasek acquiring a 10% stake in Haldiram's snacks business, valuing that company at approximately $10 billion.

The founding family members, including Managing Director Shuja Mirza and Chairman Rashid Ahmed Mirza, have not responded to requests for comment regarding the transaction. Ernst & Young and KKR declined to comment, while Blackstone did not respond to queries about the potential deal.

Source: https://www.cnbctv18.com/business/founders-of-indias-redtape-eye-stake-sale-tap-blackstone-kkr-says-report-ws-l-19820126.htm