Leading leather footwear supplier Mirza International had received the National Company Law Tribunal’s approval for the merger of promoter group-owned entity RTS Fashions Pvt. Ltd. into the company and the demerger of branded business into Redtape Ltd. The ex-date and record date for the same is 29 March 2023. 

The company in an exchange filing said that the Allahabad Bench of National Company Law Tribunal in Prayagraj, Uttar Pradesh, had approved the composite scheme of arrangement between RTS Fashions Pvt Ltd, Mirza International Ltd and Redtape Ltd vide its letter dated February 21, 2023. 

According to the scheme of arrangement, all the employees (including Managing Director and Whole-time Director) engaged in the REDTAPE Business of Mirza International Limited got transferred into REDTAPE Limited. 

According to the scheme of arrangement, shareholders of Mirza International will receive fully paid-up equity shares of ₹ 2 each of REDTAPE, i.e., in the ratio of 1:1. 

The company’s shares have given multibagger returns of 443% as its share price increased from ₹ 46.30 to ₹ 251.45 apiece. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares two years ago, the value of their holdings would have been ₹ 5.43 lakhs today! 

Mirza International is a leading footwear manufacturer, marketer and supplier in India. Some of its well-recognized brands include Red Tape, Oaktrak, MODE & Bond Street. 

It is a small-cap company with a market capitalization of ₹ 3,601 crores. It has a return on equity of 16.15% and an ideal debt-to-equity ratio of 0.10. Moreover, it has a good dividend yield of 2.26%. 

Written by Simran Bafna 

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