The founding family of Indian footwear brand RedTape is exploring a sale of a majority stake, or potentially its entire holding, as per Reuters. The founders may have sounded out global private equity firms Blackstone and KKR for interest, Reuters reported, quoting sources.
According to Reuters, the Mirza family, which controls the company, has appointed Ernst & Young (EY) as the exclusive financial adviser for the proposed divestment.
Financialexpress.com, however, could not verify the news independently.
Redtape shares jump on stake sale buzz
Shares of RedTape surged as much as 16% intraday following the Reuters report, marking the company’s biggest-ever intraday gain, before closing 11% higher on Monday. It has been down 28.13% in 2025.
At current market prices, a 50% stake in the company would be valued at about $355.6 million, while the family’s entire 71.7% holding would be worth roughly $509.4 million, Reuters reported.
Talks with global private equity firms
According to Reuters, EY has reached out to Blackstone and KKR to gauge interest in acquiring the family’s stake. The process is currently at the stage of seeking non-binding indicative offers, one of the sources added.
Reuters reported a possible exit by the founders. As per Screener data, Shuja Mirza holds 35.79%, Yasmin Mirza holds 22.52% stake in the company as of September 2025.
Competitive footwear market
Founded in 1996, RedTape operates in India’s highly competitive footwear and apparel market, competing with players such as Nike, Adidas, Bata India and Campus Activewear. The sector is expected to grow at 11% annually to $21 billion by 2028, according to market research firm 1Lattice, Reuters reported.
The company is best known for its leather shoes but has diversified into sneakers, shirts, wallets and belts. It operates over 600 retail stores in India and has a presence across 14 countries, including the US, UK, Australia, Europe and West Asia.
Financial performance under pressure
RedTape reported revenue of $223.9 million in FY25, up 9.7% year-on-year, though net profit declined 3.5% to $18.8 million.