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Shares of Mirza International were locked at the upper circuit for the third straight day, up 10 per cent at Rs 60.40 on the BSE on Friday at 10:54 AM, in otherwise subdued market. In comparison, the S&P BSE Sensex was down 0.09 per cent at 59,578.
The average trading volumes at the counter more-than-doubled today. A combined 8.14 million equity shares representing 6 per cent of total equity of Mirza International had changed hands on the NSE and BSE.
In past three trading days, the stock has surged 45 per cent from a level of Rs 41.60 on Tuesday after trading in equity shares of the company were permitted under “A” group after being transferred from “T” with effect from April 18, 2023.
In past nine trading days, the stock price of Mirza International has more-than-doubled or zoomed 101 per cent from Rs 30.02, touched on April 6, 2023.
Mirza International is one of India’s leading manufacturers and exporters of leather footwear, apparels and accessories. Since, March 28, 2023, Mirza International started trading ex-REDTAPE business.
The composite scheme of arrangement of RTS Fashions Private Limited and Mirza International and REDTAPE was approved by Hon'ble National Company Law Tribunal, Allahabad Bench, Prayagraj vide its letter dated February 21, 2023.
The company had fixed March 29, 2023 as record date for the purpose of determining the eligibility of the equity shareholders of Mirza International, to whom the fully paid-up equity shares of Rs 2 each, of REDTAPE will be issued and allotted in consideration of demerger of branded business/REDTAPE business (the demerged business) of Mirza International, in the ratio of 1 equity share of Rs 2 each of the REDTAPE, for every 1 equity share of Rs 2 each held in Mirza International.
The management said Mirza International, will focus on manufacturing and export of leather-based footwear and accessories, which has been its mainstay since inception. It will undertake leather exports, white labeling and private label, in the global markets for both men’s and women’s footwear, upholstery, furniture and accessories.
The company will continue to hold Mirza (U.K.). It will be exclusively engaged in selling our leather-based footwear and accessories in the international market by positioning as a manufacturing partner of excellence for leading global brands looking for quality-first and sizable capacity partners.
The management further said it is confident that this measure to separate domestic and international businesses will help drive a more focused growth strategy for the respective businesses, thereby unleashing their true potential.
The global footwear market is expected to grow by 12.83 per cent YoY by 2028. Changing lifestyles, growing economies and heightened focus on health, especially in the wake of the pandemic, have boosted the demand for footwear globally, according to the management.
There has also been a massive shift in consumer perspectives regarding footwear. Consumers no longer look at shoes and footwear to serve just function but are now gradually moving towards footwear for fashion. The leather and non-leather segments, driven by a robust domestic market, make up the Indian footwear industry. According to Invest India’s report on the ‘Non-leather footwear Industry in India’, the sector in India is projected to increase eight-fold by 2030. India’s non-leather footwear industry will soon cross the $6 billion mark by 2024, Mirza International said in its FY22 annual report.
