Indian fitness and wellness platform Cult.fit Ltd has filed preliminary documents with the Securities and Exchange Board of India (Sebi) to launch an initial public offering (IPO), marking its move towards becoming a publicly listed company.
According to the draft red herring prospectus (DRHP), the IPO will include a fresh issue of shares worth up to ₹950 crore.
In addition, existing investors will participate through an offer-for-sale (OFS) component, which could increase the overall size of the issue to nearly ₹4,000 crore, according to people familiar with the development.
Several prominent investors are looking to sell shares through the OFS. These include global investment firm Temasek, Fitness First Luxembourg S.C.A., Chiratae Ventures, Tata Digital, Accel India, Kalaari Capital and Schroders Capital. Together, these shareholders may sell up to 178.6 million shares as part of the offering.
Other selling shareholders include Asian Paints promoter entity Doli Trading and Investments Pvt Ltd, hospitality company Sun N Sand Hotels Pvt Ltd and investment vehicles linked to angel investors and celebrities.
These include Endiya Partners, a family trust linked to former Myntra CEO Ananth Narayanan and actor Hrithik Roshan’s investment arm, Extreme Brands.
Cult.fit founder Mukesh Bansal, angel investor Bruno Raschle and Hrithik Roshan are among individual shareholders who are also selling stakes.
However, Eternal Ltd, which acquired a 6.4% stake in Cult.fit in 2021, will not participate in the share sale.
The company plans to utilise proceeds from the fresh issue for expanding its fitness centre network, funding lease payments for existing facilities, repaying debt, strengthening brand marketing initiatives and investing in subsidiaries.
Cult.fit may also explore a pre-IPO placement of up to ₹190 crore. If completed, the amount raised through the fresh issue will be reduced accordingly.
The company is currently awaiting regulatory approval from Sebi. While listing remains the long-term objective, Cult.fit is expected to adopt a flexible timeline and may wait for favourable market conditions before launching the IPO.
Founded in 2016 by Myntra co-founder Mukesh Bansal and Ankit Nagori, Cult.fit operates 708 fitness centres across 77 Indian cities. The company reached a valuation of around $1.5 billion during a funding round in 2021 and later received additional investment, including ₹440 crore from Temasek in March.
Axis Capital, Goldman Sachs, Jefferies India, JM Financial and Morgan Stanley India have been appointed as bankers for the proposed share sale.
