Mirza International’s demerged entity Redtape listed today; details inside

Today, the demerged entity of Mirza International, Redtape Limited, made its market debut. The shares of Redtape debuted on the BSE at Rs 475 each, reaching an intraday high of Rs 498. 

The current market capitalisation of the company stands at Rs 6302 crore. As of now, while composing this article, they are being traded at Rs 460. 

Regarding ownership details, the promoter holds a significant 71.76% stake in the company, while the remaining 28.24% is owned by public investors, as stated by the company. 

On February 21 of this year, the company announced that it had received approval for a composite scheme of arrangement involving RTS Fashions Private Limited, Mirza International Limited, and Redtape Limited. This scheme became effective on February 25, 2023. 

The scheme involves the demerger of Redtape from Mirza International and the amalgamation of the entity owned by the promoter group, RTS Fashions, with Mirza International. 

The company had fixed the record date for these actions on March 29, 2023. On the previous day (March 28), Mirza International’s shares had closed at Rs 252.45. However, on the record date, the shares began trading on the BSE at a lower value of Rs 33.05, eventually closing at Rs 34.70. 

According to the fixed ratio of 1:1 stated in the exchange filling; investors would receive one share of Redtape for every one share held in Mirza International. 

On March 31, 2023, the board approved the allotment of 13,82,01,900 (Thirteen Crore Eighty-Two Lakh One Thousand and Nine Hundred) Equity Shares, valued at Rs. 2 each, for REDTAPE Limited. These shares were credited as fully paid up to the equity shareholders of the Transferee Company, Mirza International Limited, based on the share exchange ratio specified in the Scheme of Arrangement. 

On June 09, 2023, Mirza International updated its exchange filing, stating that REDTAPE Limited had received in-principal approval for listing 13,82,01,900 equity shares as per the Scheme of Arrangement from the stock exchanges BSE and the NSE. 

Mirza International Limited, based in India, engages in the manufacture, marketing, and export of finished leather, footwear, and trades footwear and apparel, alongside allied products. The company operates through three divisions: the Tannery Division, Shoe Division, and the Garments or Accessories Division. 

The company’s shoe division is responsible for crafting finished leather shoes. Its brand portfolio includes REDTAPE, REDTAPE Athleisure, Bond Street, Mode, Oaktrak, and Yezdi. 

Currently, the shares of Mirza International’s parent company are trading at Rs 48.42 each on the BSE. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.