Cult.fit has received regulatory approval from SEBI to proceed with its initial public offering (IPO) worth ₹950 crore, according to inc42.com. The final observation on the offer documents was issued on October 12, about three months after the company filed its draft red herring prospectus in July. The IPO will include a fresh issue of shares worth up to ₹950 crore and an offer for sale of up to 17.86 crore shares, with the total size expected to be around ₹4,000 crore.
The IPO involves early investors such as Temasek Holdings via MacRitchie Investments, Schroders Capital, German fitness operator LifeFit Group, Accel, Tata Digital, and cofounder Mukesh Bansal offloading shares through the offer for sale. Cult.fit plans to use the funds raised from the fresh issue to expand its gym network, cover leasing and rental costs for fitness centers, repay borrowings, open new exclusive brand outlets, and support marketing and general corporate purposes. The book running lead managers for the issue include Axis Capital, Goldman Sachs, Jefferies India, JM Financial, and Morgan Stanley India.
Founded in 2016, Cult.fit operates a chain of gyms and fitness centers and offers online fitness classes. The IPO is one of the largest in the fitness sector in India, reflecting growing investor interest in health and wellness startups. The involvement of major global and domestic investors highlights the company's strong market position and growth prospects amid rising demand for fitness services.
The SEBI clearance on October 12 marks a key milestone for Cult.fit as it prepares to enter the public markets. The company’s IPO filing and regulatory approval set the stage for the next steps in the listing process, with investors closely watching the subscription levels and pricing once the issue opens.