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PE Giants Eye RedTape Footwear Deal
31 Jan
Summary
- Global PE firms vie for RedTape stake valued at $500 million.
- RedTape promoters may sell all or a substantial portion of holdings.
- Footwear market growth is projected to exceed $47 billion by 2025.
Global private equity giants are in pursuit of a majority stake in the Indian footwear manufacturer RedTape. Firms such as Apax Funds and Advent International have reportedly joined the race, with potential valuations reaching ₹4,500-5,000 crore (approximately $500 million). This significant transaction highlights growing investor interest in India's consumer-facing businesses.
The promoters of RedTape, who currently hold over 71% of the company, are considering divesting either their entire stake or a substantial portion. EY has been appointed to manage the sale process, with non-binding bids being sought. Other potential suitors, like Warburg Pincus, are also being considered.
This move by RedTape aligns with a broader trend of family-owned businesses seeking external capital for expansion and professionalization. The Indian footwear market is experiencing robust growth, projected to more than double to $47.53 billion by 2025. RedTape, established in 1996, operates over 600 stores in India and maintains an international presence in 17 countries.
