Indian footwear and lifestyle brand RedTape is exploring a potential stake sale, with its founding promoters evaluating options to divest a majority stake or even their entire holding, according to a Reuters report.
As per the report, the Mirza family, which controls around 71.8% of RedTape, has appointed Ernst & Young (EY) as the exclusive financial adviser to oversee the divestment process. EY has reached out to global private equity firms Blackstone and KKR & Co to gauge interest and seek non-binding indicative offers, sources told Reuters.
Sale structure still under discussion
Reuters cited sources saying the promoters are considering multiple structures for the transaction. While some discussions involve selling a majority stake, there is also openness to divesting the entire promoter holding, subject to valuation and deal terms. The process remains confidential, and no final decision has been taken yet.
Neither RedTape’s Managing Director Shuja Mirza, nor Chairman Rashid Ahmed Mirza, responded to Reuters’ requests for comment. EY and KKR declined to comment, while Blackstone did not respond to queries.
About the business
Founded in 1996, RedTape competes with both domestic and global footwear and apparel brands. The company is known for its leather shoes and has expanded into sneakers, apparel, belts, and wallets. It operates over 600 retail stores across India and has a presence in more than a dozen international markets, including the UK, the US, Australia, Europe, and West Asia.
According to Reuters, RedTape reported revenue growth of about 9.7% in FY25, while profits declined marginally during the same period.
Broader trend
The potential RedTape transaction reflects a broader trend of Indian family-owned consumer businesses attracting global private equity interest, as international investors look to tap into India’s expanding consumption story.
For now, the divestment process is at an early, exploratory stage, and further clarity is expected as discussions progress.
