Cult.fit, a gym franchise operator, has filed its draft IPO papers with the Securities and Exchange Board of India (SEBI), aiming to raise up to ₹4,000 crore through a combination of a fresh share issue and an offer for sale (OFS). The IPO will include a fresh issue worth up to ₹950 crore and an OFS of approximately 17.86 crore shares, involving around 22 institutional investors and 13 individual shareholders, according to inc42.com.
The largest shareholder, Temasek, holds over 20% of Cult.fit’s equity and plans to sell up to 2.47 crore shares through its holding entity MacRitchie Investments. VC firm Accel, holding a 13.45% stake, intends to offload 65.32 lakh shares. Co-founder Mukesh Bansal, who retains over 8% stake, will sell about 1.60 crore shares. Chiratae Ventures, the largest selling shareholder, will sell 2.81 crore shares held across two entities. Other sellers include Germany’s LifeFit Group Fitness First Luxembourg SCA and Tata Digital, selling 1.96 crore and 1.59 crore shares respectively, per inc42.com.
The IPO is significant in the fitness and wellness sector, which has seen increasing investor interest in India. Cult.fit’s filing follows a trend of health and lifestyle startups seeking public funding to scale operations. The participation of major investors like Temasek, Accel, and Chiratae Ventures highlights confidence in the company’s growth prospects. The fresh issue component will provide Cult.fit with capital to expand its footprint and enhance service offerings, aligning with market dynamics in the fitness industry, according to inc42.com.
The draft red herring prospectus (DRHP) submission marks a key step towards the IPO launch, with the company targeting a total fundraise of ₹4,000 crore. The next milestone will be SEBI’s approval and the finalization of the IPO dates, which will determine the timeline for public subscription and listing.