RedTape lists on stock exchanges after demerger from Mirza International, shares nearly double in value

Stocks of shoe brand RedTape Ltd are now available for investors to purchase and sell on stock exchanges after the company was listed as a separate entity following its demerger from parent brand Mirza International.

“REDTAPE Limited has received approval from BSE Limited and National Stock Exchange of India Limited, for Listing and Trading of Equity Shares of REDTAPE Limited effective from August 11,2023,” Mirza International stated to bourses.

RedTape has approved the allotment of 13,82,01,900 shares of face value of Rs 2 each as fully paid up to the equity shareholders of Mirza International in a 1:1 exchange ratio. The shares were allotted to investors in April.

RedTape listed on the NSE at Rs 480 per share on Friday. The company’s stock was trading at Rs 458.40 a piece at 11:25 AM on August 11, Friday. The stock value nearly doubled at the relisting from pre-demerger price of Mirza International shares of Rs 252.45.

RedTape demerger

The National Company Law Tribunal first approved the demerger, Allahabad in 2023 with the record date for the demerger set in March 2023. RedTape had accounted for over 55 per cent of all sales and over half the profits of the entity pre-demerger. Along with the demerger, Mirza International had also merged with promoter group-owned entity RTS Fashions Pvt. Ltd. at the same time, which was also approved by the NCLT under the same composite scheme.

Shares of Mirza International were trading at Rs 46.30 a piece on the NSE at 11:28 AM on Friday. The company’s shares were down by 4.24 per cent or Rs 2.05 over the previous close. The company’s shares have shed over 5 per cent of their price over the previous month long period.