SYNOPSIS: RedTape is evaluating stake-sale proposals from Blackstone and KKR after appointing EY as adviser, with founders considering selling a majority or entire holding valued near $510 million, according to Reuters.
During Tuesday’s trading session, shares of one of the leading Fashion & Lifestyle brands with over 600+ opulent stores across PAN India surged nearly 16 percent on BSE. So, what triggered this sharp rise? Let’s break it down in this article.
With a market cap of Rs. 7,183.7 crores, shares of Redtape Limited closed in the green at Rs. 129.95 on BSE, up by around 12 percent, compared to its previous closing price of Rs. 116.3. The stock has delivered negative returns of over 28 percent in one year, but has gained by around 3 percent in the last one month.
News
According to a report by Reuters, footwear and apparel brand RedTape is evaluating investment proposals from private equity giants Blackstone and KKR & Co, as the company’s founders consider selling a controlling stake, or potentially their entire shareholding, valued at close to $510 million.
The founding Mirza family has appointed Ernst & Young as the exclusive financial adviser to manage the divestment process. As part of this mandate, EY has approached Blackstone and KKR to assess their interest in acquiring the family’s stake.
The process is currently at an early stage, with the company seeking non-binding indicative bids. All sources requested anonymity due to the confidential nature of the discussions..
Financials
Redtape reported a growth in revenue from operations, experiencing a year-on-year increase of around 16 percent, from Rs. 416 crores in Q2 FY25 to Rs. 492 crores in Q2 FY26.
Likewise, its net profit increased during the same period from Rs. 25 crores to Rs. 28 crores, representing a marginal rise of nearly 22 percent YoY, reflecting improved cost efficiency, steady margins, and strong retail traction.
With a pan-India presence in 20 states and 3 Union Territories, the company operates a total of 623 stores across various formats, as of Q2 FY26. This includes 303 exclusive mega showrooms online, 186 exclusive showrooms offline, 6 sports outlets, 9 factory shops, and 119 shop-in-shop outlets, reflecting a diversified and well-distributed retail network.
RedTape Limited is known for emerging as one of the Finest Brands of Footwear and Clothing for Men, Women and Kids, and primarily follows the “Company Owned and Company Operated” (COCO) model of Retailing. It has emerged as a complete family fashion destination by providing the best international styles and world-class quality through shoes, apparel and accessories for all age groups.
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