Upcoming IPO: Cult.fit Files DRHP For ₹950-Crore IPO; Fresh Issue, OFS

Fitness and wellness platform Cult.fit has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) comprising a fresh issue of equity shares worth up to ₹950 crore and an Offer for Sale (OFS) of up to 17.86 crore equity shares by existing shareholders. The proposed public issue comprises a fresh issue and an Offer for Sale, with proceeds from the OFS going to the selling shareholders rather than the company.

According to the DRHP, the company proposes to utilise ₹276.6 crore from the fresh issue to set up new Cult Elite and Cult Neo fitness centres. It has earmarked ₹217.5 crore towards lease, rental and licence payments for identified fitness centres, ₹120 crore for repayment or prepayment of borrowings, ₹75 crore for brand marketing initiatives and ₹23.4 crore for setting up exclusive Cultsport brand outlets. The balance amount will be used for general corporate purposes.

Cult.fit may also undertake a pre-IPO placement of up to ₹190 crore before filing its Red Herring Prospectus. If completed, the size of the fresh issue will be reduced accordingly.

The OFS will see several existing investors pare their stakes, including MacRitchie Investments, Fitness First Luxembourg, IDG Ventures India Fund, Tata Digital, Chiratae Trust, Schroders Capital, Twenty Nine Capital Partners and Accel India V (Mauritius). Since the OFS comprises secondary share sales, the proceeds from this portion will go to the selling shareholders.

Founded in 2016 by Mukesh Bansal and Ankit Nagori, the Bengaluru-headquartered company operates 708 fitness centres across 77 cities and had over 9.87 lakh paid members as of March 31, 2026. Its business spans fitness memberships, digital fitness services, sportswear, fitness equipment and healthcare offerings.

For FY26, Cult.fit reported revenue from operations of ₹1,720.6 crore, up from ₹1,215.5 crore in the previous financial year. Its net loss narrowed to ₹251.8 crore from ₹480.8 crore in FY25. The company also reported a positive adjusted EBITDA in FY26, reflecting an improvement in operating performance.

The draft filing also highlighted key risks, including the company's continued losses despite improving profitability, dependence on four cities for a majority of its services revenue, reliance on franchise-operated fitness centres and pending litigations and statutory dues disclosed in the offer document.

Axis Capital, Goldman Sachs (India) Securities, Jefferies India, JM Financial and Morgan Stanley India Company are the book-running lead managers to the proposed issue.

Cult.fit's DRHP filing comes amid sustained momentum in India's primary market, with Rentomojo and Manipal Health Enterprises also securing SEBI's approval for their proposed IPOs this week.

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