The Indian footwear and lifestyle landscape is braced for a massive ownership shift. According to sources familiar with the matter, the founding family of RedTape Limited—one of India’s most successful homegrown fashion brands—has initiated preliminary discussions with global investment firms Blackstone and KKR for a potential stake divestment.6
The deal, which is being facilitated by financial adviser Ernst & Young (EY), could see the promoters offloading a significant portion of their holding to fuel the brand’s next phase of global expansion.7
Market Reaction: Shares Surge
Following the news, RedTape’s stock on the National Stock Exchange (NSE) saw an immediate uptick, surging over 5.2% to trade at near-record highs. Investors are viewing the entry of a global private equity (PE) player as a catalyst for professionalizing management and scaling the brand’s international footprint.
| Parameter | Details (as of Jan 13, 2026) |
| Estimated Transaction Value | Up to $509 Million (~₹4,250 Crore) |
| Potential Buyers | Blackstone, KKR |
| Financial Adviser | Ernst & Young (EY) |
| Stock Impact | +5.2% Surge |
Why the Founders are Seeking a Partner
RedTape, which was spun off from Mirza International into a separate listed entity in 2023, has seen explosive growth in its “athleisure” and apparel segments. Industry experts point to three reasons for this strategic pivot:
- Global Ambitions: While RedTape dominates the mid-premium segment in India, the founders aim to compete more aggressively with global giants like Nike and Adidas in Western markets.
- Unlocking Value: With the Indian footwear market projected to grow 11% annually to reach $21 billion by 2028, the promoters are looking to monetize a portion of their equity at a peak valuation.
- Institutional Expertise: Bringing in Blackstone or KKR would provide RedTape with access to world-class supply chain logistics and digital transformation tools that these PE firms typically implement in their portfolio companies.
The Competitive Landscape
RedTape’s rise has been a challenge to both domestic and international rivals. The brand’s “EBO-led” (Exclusive Brand Outlet) strategy has allowed it to maintain high margins compared to peers.
- Direct Rivals: Bata India, Campus Activewear, and Liberty.
- Global Competitors: Puma, Skechers, and Adidas.
“The interest from Blackstone and KKR underscores the maturity of the Indian consumer story. RedTape has transitioned from a leather-export business into a lifestyle powerhouse, making it a prime candidate for a PE-led buyout or significant minority investment.” — Market Analyst, Institutional Equities.
Conclusion
While discussions are still in the “exploratory stage” and no final agreement has been signed, the potential entry of Blackstone or KKR into RedTape marks a watershed moment for Indian retail. If the deal goes through, it will be one of the largest private equity infusions in an Indian consumer brand in recent years.
