PE giants line up for RedTape in deal valuing footwear maker at up to ₹5,000 crore

The proposed deal marks one of India’s biggest private equity plays in the branded footwear space and comes at a time of growing investor interest in the country’s consumer-facing family businesses.

Talks are still at an early stage and backers have ordered EY to advise on the process, one of the people cited above said, adding that the consultancy was seeking non-binding proposals.

The promoters of the Noida-based company may sell all or a significant portion of their shares, the second person said. As per the shareholding pattern on NSE as of December, promoters held 71.79% of the company.

“Warburg Pincus could also join the fray and compete for a majority stake,” said the third person cited above.

Earlier this month, Reuters First, the promoters announced their plans to divest their shares; KKR and Blackstone have expressed interest in the asset.

RedTape’s shares closed with an increase of 4.05 percent ₹It was at 123.83 on the National Stock Exchange on Friday, compared with the Nifty 50’s decline of 0.39%. Last year, the company’s shares decreased by 29.57%. The market value on Friday was as follows: ₹6,845.42 crore.

KKR, EY, Advent, Warburg and Apax Funds declined to comment. RedTape and Blackstone did not respond Mint‘s requests for comment due by press time.

This development comes in the wake of growing interest from investors in India. According to a report by IMARC Group, the footwear market is expected to more than double from $20.67 billion in 2025 to $47.53 billion in eight years.

Earlier this month, Neeman grew up ₹35 crore from SNAM Solutions and existing investors Anicut Capital, Enam Investments and Harsh Mariwala-backed Sharrp Ventures. RARA Barefoot, the D2C footwear startup co-founded by Sachin Tendulkar, raised $500,000 from Peak XV Partners in October 2025.

Mint In July 2024, it was reported that Aqualite Industries was exploring a private transaction to facilitate the exit of its investor, Lighthouse Funds.

This development also comes as family businesses increasingly turn to external capital to accelerate growth, professionalize the organization and expand operations.

Last year saw similar moves by companies like Haldiram, Iscon Balaji, Balaji Wafers, Theobroma and VIP Industries, while HyFun Foods and Ratnadeep Retail are at various stages of fundraising. Mint reported.

Store footprint

Founded in 1996 by Rashid Ahmed Mirza and Shuja Mirza, RedTape has over 600 stores across India and offers footwear and clothing for men, women and children. It also operates in 17 countries including the UK, USA, Australia and UAE. RedTape operates four brands: Mode, Ozark and Bond Street.

The company’s revenue increased ₹2,052.93 crore in FY25 ₹1,855.97 crore in the previous year. Profit shrank ₹170 crore ₹176.24 crore as per its annual report.

“The business is dependent on heavy discounts and margins are shrinking over the years,” a senior private equity executive said on condition of anonymity. The executive added that although the total addressable market is huge and the growth potential looks stable, given our country’s large demographics, it makes more sense for global funds looking to take the brand to markets outside India.

RedTape competes Bata India, Metro Brands, Relaxo Footwears and Campus Activewear as well as Nike and Adidas.