Footwear maker RedTape Ltd announced the acquisition of the international sports footwear brand SPRANDI for India, Nepal, Bhutan, and Sri Lanka markets. According to reports from CNBC TV18, SPRANDI is a globally-recognised brand with strong sales volumes in international markets, including China, Russia, the Middle East, and CIS countries. The company plans to launch SPRANDI in the Indian market soon through both online and retail stores, targeting large sales volumes. As part of the expansion strategy, the acquisition is expected to enhance RedTape's ability to provide integrated solutions to its clients, leveraging the established brand equity of SPRANDI in the target markets.
The company reported robust financial results for the third quarter, demonstrating significant growth across key metrics. As reported by CNBC TV18, RedTape achieved a net profit of ₹104.5 crore, representing a 43.2% increase from the previous year's ₹73 crore. The company's revenue grew 19% to ₹786.5 crore compared to ₹661 crore in the previous year. RedTape's earnings before interest, tax, depreciation and amortisation (EBITDA) increased 36% to ₹170.6 crore from ₹125.5 crore in the third quarter of the previous fiscal. The operational efficiency showed marked improvement with margin expansion to 21.7% from 19% in the year-ago period.
The positive market response reflected investor confidence in the acquisition strategy, with shares of RedTape Ltd ending at ₹121.35, up by ₹7.50, or 6.59% on the BSE on April 8. According to latest reports, RedTape Limited shares gained 6.12% in after-hours trading, finishing at ₹121.23 with notable volume of 512,889 shares traded during the session. The company's operational efficiency showed marked improvement with margin expansion to 21.7% from 19% in the year-ago period.
Simultaneously, the founders of RedTape are in discussions with global private equity firms Blackstone and KKR regarding a potential stake sale, according to sources familiar with the matter. The engagement with these firms indicates the founders' interest in partially divesting their ownership while maintaining strategic control over the company's operations and growth trajectory. These developments highlight the growing interest in India's business services sector, driven by increasing demand for digital solutions and regulatory compliance support. Investors are closely watching the outcome of these discussions, as they could influence the company's future capital structure and market positioning.
