Redtape shares slide over 7% after promoters clarify on stake sale reports

Redtape Ltd Share Price Today: Shares of Redtape Ltd., the demerged entity of Mirza International, declined over 7 per cent on Wednesday, January 14, extending losses for the counter. The stock has now fallen in four of the last five trading sessions, reversing part of the sharp gains seen a day earlier.

Tuesday rally driven by media reports

The fall follows a sharp rally seen in the previous session. On Tuesday, Redtape shares had surged nearly 12 per cent after a media report suggested that the company’s founding Mirza family was exploring the sale of a majority stake — or potentially their entire holding — at a valuation of around $510 million.

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The report said global private equity majors Blackstone and KKR were among those that had shown interest in the transaction. It also added that the promoters had appointed Ernst & Young (EY) as the exclusive financial adviser to evaluate strategic options.

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Promoters deny any immediate stake sale

Soon after the report triggered speculation, Redtape’s promoters issued a clarification to the exchanges. The company stated that no event has occurred that requires disclosure under SEBI regulations.

However, the promoters added that the company and its founding family continue to explore strategic opportunities from time to time for growth, business expansion and long-term value creation. The statement appeared aimed at tempering market expectations amid talk of an imminent deal.

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Company responds to stake sale rumours

Addressing reports around a potential sale to Blackstone and KKR, the company clarified that founders have not sold any stake at present. While discussions around strategic options are part of routine business evaluation, the management emphasised that no binding agreement or transaction has been finalised so far.

Profit booking weighs on stock

The clarification led to profit booking on Wednesday, with investors paring positions after the sharp run-up a day earlier. At around mid-session, Redtape shares were trading 6.7 per cent lower at Rs 120.47 on the NSE.

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Weak recent performance adds pressure

Redtape has had a challenging run on the bourses in recent months. The stock entered the new year after three consecutive months of negative returns. On a calendar-year basis, shares have fallen 44 per cent so far in 2025, underperforming broader market indices.

Promoter holding remains high

As per the latest available shareholding data, promoters held a 71.8 per cent stake in Redtape at the end of the September quarter. The shareholding pattern for the December quarter is yet to be disclosed.

For now, the stock is likely to remain volatile as markets await further clarity on whether the strategic evaluation translates into an actual transaction or remains exploratory in nature.