The proposed Cult.fit IPO comprises a fresh issue of equity shares worth up to ₹950 crore and an offer for sale (OFS) of up to 17.86 crore shares by existing investors, according to the DRHP dated July 6.
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Fitness chain operator Cult.fit has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), taking a step closer to its stock market debut, in a development first reported by CNBC-TV18.
The proposed IPO comprises a fresh issue of equity shares worth up to ₹950 crore and an offer for sale (OFS) of up to 17.86 crore shares by existing investors, according to the DRHP dated July 6.
The company may also undertake a pre-IPO placement of up to ₹190 crore. If completed, the size of the fresh issue will be reduced accordingly. The total IPO size will be determined after the price band is announced, as the value of the OFS has not yet been disclosed.
Kotak Mahindra Capital, Axis Capital, Goldman Sachs (India), Jefferies India and JM Financial are the book-running lead managers to the issue, while MUFG Intime India is the registrar.
The filing comes after an improvement in Cult.fit’s financial performance. The company reported Adjusted EBITDA of ₹144.8 crore in FY26, compared with a loss of ₹33.5 crore a year earlier. Revenue from operations grew 42% year-on-year to ₹1,720.6 crore, while net loss narrowed to ₹251.9 crore from ₹480.8 crore in FY25.
Despite the operational improvement, Cult.fit continues to report net losses and has remained loss-making over the past three financial years.
The company plans to utilise ₹217.5 crore from the fresh issue towards lease and rental payments for existing fitness centres, ₹120 crore for repayment or prepayment of borrowings, and ₹75 crore for brand marketing and business promotion. The remaining proceeds will be used for general corporate purposes.
Temasek-backed MacRitchie Investments will be the largest selling shareholder, offloading up to 2.47 crore shares through the OFS.
Other investors participating in the offer include Fitness First Luxembourg, Tata Digital, IDG Ventures India, Chiratae Trust, Accel entities, Kalaari Capital and Schroders Capital. Co-founder Mukesh Bansal will also sell up to 1.6 crore shares.
Cult.fit will not receive any proceeds from the OFS, with the sale proceeds going entirely to the selling shareholders.
Key risks from the DRHP
Although Adjusted EBITDA turned positive in FY26, the metric excludes finance costs, depreciation and certain exceptional items. The company cautioned that there is no assurance it will achieve profitability in the near term.
Cult.fit said its business depends heavily on retaining subscribers and repeat customers. Factors such as injuries, overcrowding at gyms, technology issues or failure to deliver expected fitness outcomes could affect customer retention, resulting in higher marketing costs and margin pressure.
Nearly 69% of its network—490 of its 708 fitness centres—is operated through franchise partners or marketplace gyms, limiting the company’s direct operational control despite its continued reliance on these outlets for revenue and brand reputation.
The DRHP also discloses certain historical FEMA and Companies Act compliance issues, including a pending compounding application before the RBI and adjudication proceedings relating to delayed statutory filings.
Separately, the company’s auditors flagged audit trail-related observations linked to third-party point-of-sale software used at some luxury fitness centres. Cult.fit expects these issues to be resolved during FY27.
Other risks highlighted include ₹710.6 crore of goodwill on its balance sheet that remains subject to impairment, dependence on imports from China for certain fitness products, supplier concentration and revenue concentration across a few states.
About the company
Founded in 2016 by Mukesh Bansal and Ankit Nagori, Cult.fit operates 708 fitness centres and 29 exclusive brand outlets across India under brands including Cult, Gold’s Gym, Fitness First and Pilates Circle by Cult. As of March 31, 2026, the company had around 9.87 lakh paid members.
Cult.fit is a professionally managed company with no identifiable promoter. Ahead of the IPO, it was renamed from CureFit Healthcare to Cult.Fit Ltd. and converted into a public limited company.
Its investors include Zomato, Tata Digital, Temasek, Accel, Kalaari Capital and Chiratae Ventures.
CNBC-TV18 had first reported on March 26, 2025, that Cult.fit was preparing for an IPO and had shortlisted its investment bankers.
First Published:
Jul 7, 2026 9:17 AM
IST
