Cult.fit Files ₹950 Crore IPO Papers

Cult.fit Ltd, a leading Indian fitness and wellness platform, has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) to launch an initial public offering (IPO) worth ₹950 crore. The company plans to utilize the proceeds from the fresh issue to expand its fitness centre network, fund lease payments for existing facilities, repay debt, and strengthen brand marketing initiatives.

The IPO will also include an offer-for-sale (OFS) component, where existing investors such as Temasek, Fitness First Luxembourg S.C.A., Chiratae Ventures, and Tata Digital, among others, will sell their shares. The OFS component could increase the overall size of the issue to nearly ₹4,000 crore. Several prominent investors, including Asian Paints promoter entity Doli Trading and Investments Pvt Ltd, hospitality company Sun N Sand Hotels Pvt Ltd, and investment vehicles linked to angel investors and celebrities, will also participate in the share sale.

Cult.fit founder Mukesh Bansal, angel investor Bruno Raschle, and actor Hrithik Roshan are among individual shareholders who will sell their stakes in the company. However, Eternal Ltd, which acquired a 6.4% stake in Cult.fit in 2021, will not participate in the share sale. The company may also explore a pre-IPO placement of up to ₹190 crore, which will reduce the amount raised through the fresh issue accordingly.

Founded in 2016 by Myntra co-founder Mukesh Bansal and Ankit Nagori, Cult.fit operates 708 fitness centres across 77 Indian cities. The company reached a valuation of around $1.5 billion during a funding round in 2021 and later received additional investment, including ₹440 crore from Temasek in March. Axis Capital, Goldman Sachs, Jefferies India, JM Financial, and Morgan Stanley India have been appointed as bankers for the proposed share sale.

The listing of Cult.fit is expected to provide a boost to the Indian fitness and wellness industry, which has seen significant growth in recent years. The company's IPO will also provide an opportunity for investors to participate in the growth story of a leading player in the industry. While the company is currently awaiting regulatory approval from Sebi, it is expected to adopt a flexible timeline and may wait for favourable market conditions before launching the IPO.

The IPO is expected to be one of the largest in the Indian market this year, and it will be closely watched by investors and industry experts. With its strong brand presence and expanding network of fitness centres, Cult.fit is well-positioned to capitalize on the growing demand for fitness and wellness services in India. The company's listing will also provide a benchmark for other players in the industry, which are looking to raise funds and expand their operations.

In terms of impact, the listing of Cult.fit will provide a boost to the Indian economy, particularly the fitness and wellness industry. It will also provide an opportunity for investors to participate in the growth story of a leading player in the industry. The company's expansion plans, including the opening of new fitness centres and the strengthening of its brand marketing initiatives, will also create new job opportunities and stimulate economic growth.

Overall, the IPO of Cult.fit is a significant development in the Indian market, and it will be closely watched by investors and industry experts. With its strong brand presence and expanding network of fitness centres, Cult.fit is well-positioned to capitalize on the growing demand for fitness and wellness services in India.