Cult.fit Gets SEBI Clearance For ₹950 Cr+ IPO

Markets regulator SEBI has given its go-ahead to gym chain Cult.fit’s ₹950 Cr IPO about three months after it filed draft red herring prospectus (DRHP) with the regulator. 

As per SEBI’s latest processing status, the regulator issued its final observation on the offer documents of Cult.fit on October 12. In SEBI parlance, the issuance of final observations signals the regulator’s go-ahead for a company to proceed with its public issue.

Cult.fit filed its DRHP in July this year. The company’s IPO will comprise a fresh issue of shares worth up to ₹950 Cr and an offer for sale of up to 17.86 Cr shares. As per sources, The total IPO size is likely to be around ₹4,000 Cr.

Early investors like Temasek Holdings, via MacRitchie Investments, Schroders Capital, German fitness operator LifeFit Group, Accel, Tata Digital and cofounder Mukesh Bansal are among the shareholders who plan to offload shares via the OFS.

Cult.fit plans to utilise the funds raised through the fresh issue towards setting up new gym centres, expenditure toward leasing, renting and licensing of existing identified fitness centres, repayment and prepayment of certain borrowings, setting up new exclusive brand outlets, marketing and promotional activities and general corporate purposes. 

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

Founded in 2016, Cult.fit operates a chain of gyms and fitness centres and offers online classes for physical and mental wellbeing.

It operated 708 fitness centres across 77 cities in India and had more than ​9.87 Lakh ​paid members as of March 31, 2026. Out of these, 218 centres are owned and operated by the company. The rest are owned or operated by franchises (288 centres) or by independent owners (202 centres).

Cult.fit managed to narrow its net loss for the fiscal year FY26 to ₹251.8 Cr from ₹480.8 Cr in FY25. It posted an operating revenue of ₹1,720.6 Cr, up 41.5% from ₹1,215.5 Cr in FY25. The business benefits from a diversified revenue profile, with fitness services contributing roughly 70% of revenues and the fitness products business accounting for the remaining 30%.

Cult.fit has raised over $800 Mn to date from investors like Zomato, Accel, Kalaari Capital, Chiratae Ventures, South Park Commons, among others.

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