Fitness and wellness platform Cult.fit Ltd has officially filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), signaling its intent to launch an initial public offering (IPO). The Bengaluru-headquartered company plans to raise Rs 950 crore through a fresh issue of equity shares, while also providing an exit route for several existing investors, including Bollywood actor Hrithik Roshan.
IPO Structure and Shareholder Offer for Sale
The upcoming public issue will comprise two main components: a fresh issue of equity shares valued at Rs 950 crore, and an Offer for Sale (OFS) of up to 178.6 million equity shares by current shareholders. This structure allows the company to secure new capital for growth while enabling early investors to divest part of their holdings.
Among the notable selling shareholders is actor Hrithik Roshan, a prominent face associated with Cult.fit. According to the DRHP, Roshan currently holds 1.9 million equity shares in the company and intends to sell up to 633,813 shares through the OFS. He will, however, retain a significant majority of his investment. His average acquisition cost for these shares, following the conversion of compulsorily convertible preference shares (CCPS), stands at Rs 19.76 per share.
Other Key Investors Participating in OFS
- Co-founder Mukesh Bansal is set to offload the largest stake among the selling shareholders, proposing to sell up to 16.02 million equity shares.
- Asaf Avidan Antonir (Onyx co-founder): Up to 3.9 million shares
- Karan Haresh Motwani (HP Adhesives MD): 907,287 shares
- Mukul Deoras: 211,245 shares
- Shraddha Seth (FitEduCoach founder): 49,849 shares
Cult.fit has also indicated the possibility of a pre-IPO placement of up to Rs 190 crore. If this placement is completed before the red herring prospectus filing, the amount raised through the fresh issue will be adjusted accordingly.
Company Performance and Financial Health
Founded in 2016 by Mukesh Bansal and Ankit Nagori, Cult.fit has rapidly expanded to become one of India's leading fitness platforms, boasting 708 fitness centres across 77 cities. The company has demonstrated robust revenue growth in recent fiscal years.
- Operating revenue surged 40% year-on-year to over Rs 1,721 crore in FY26, up from Rs 1,216 crore in FY25.
- Despite remaining loss-making, Cult.fit has shown steady improvement in its profitability. The net loss narrowed significantly to Rs 252 crore in FY26, a substantial reduction from Rs 481 crore in FY25 and Rs 888 crore in FY24. This trend reflects improving operating leverage within the company.
Fitness subscriptions and services, offered through its extensive network of gyms and group workout centres, account for nearly 70% of Cult.fit's total revenue. The remaining 30% is generated from its transaction-led fitness products business.
IPO Management and Future Outlook
The IPO process is being managed by a consortium of prominent financial institutions, including Axis Capital, Goldman Sachs (India) Securities, Jefferies India, JM Financial, and Morgan Stanley India. These firms have been appointed as the book-running lead managers for the issue.
The filing of the DRHP marks a significant step for Cult.fit as it seeks to tap public markets to fuel further expansion and solidify its position in India's competitive fitness and wellness industry.