Global private equity firms including Apax Funds (Apax Partners LLP) and Advent International, L.P. have joined the race to acquire a majority stake in RedTape (REDTAPE Limited), in a transaction that could value the Indian footwear maker at INR 45,000 million-INR 50,000 million (about $500 million), three people familiar with the matter said on condition of anonymity. The proposed deal marks one of the largest private equity plays in India's branded footwear space, and comes amid rising investor interest in the country's consumer-facing family-owned businesses. Talks are at an early stage, and the promoters have mandated EY to advise them on the process, one of the people cited above said, adding that the consultancy has sought non-binding bids.
The second person said that the Noida-headquartered company's promoters may sell all or a substantial part of their holdings. The promoters held 71.79% of the company, according to the shareholding pattern on the NSE as of December."Warburg Pincus may also join the fray and compete for the majority stake," the third person cited above said. Earlier this month, Reuters first reported on the promoters' plan to divest their stake, with KKR and Blackstone expressing interest in the asset.
KKR, EY, Advent, Warburg and Apax Funds declined to comment on the matter. RedTape and Blackstone did not respond to Mint's requests for comment till press time.
