SEBI Clears Cult.fit’s ₹950 Crore Fresh Issue IPO Alongside Three Other Public Offers

Capital markets regulator Securities and Exchange Board of India (SEBI) has cleared the draft red herring prospectus (DRHP) for Bengaluru-based fitness and wellness platform Cult.fit (formerly Curefit Healthcare Private Limited). The market watchdog's observation letter enables the company to launch an initial public offering (IPO) featuring a fresh issue of equity shares worth up to ₹950 crore alongside an Offer for Sale (OFS) of up to 17.86 crore equity shares by existing investors.

Alongside Cult.fit, SEBI also approved draft public issue documents for three other companies: agri-logistics company Sohan Lal Commodity Management, metal recycler Eswari Global Metal Industries, and the Indian Gas Exchange (IGX).

Issue Structure and Selling Shareholders

Cult.fit's proposed public issue consists of two key components:

• A fresh issue of equity shares raising up to ₹950 crore directly for company deployment.
• An offer for sale of up to 17.86 crore equity shares by early and private equity backers.

Prominent shareholders participating in the OFS include MacRitchie Investments (an affiliate of Temasek Holdings), Tata Digital, Accel India V (Mauritius), IDG Ventures India Fund, Chiratae Trust, Fitness First Luxembourg, Twenty Nine Capital Partners, and Schroders Capital. The issue is being managed by book-running lead managers Axis Capital, Goldman Sachs (India) Securities, Jefferies India, JM Financial, and Morgan Stanley India. Cult.fit plans to list its equity shares on both the BSE and the National Stock Exchange (NSE).

Utilization of IPO Proceeds

Net proceeds generated from the ₹950 crore fresh issue will be channelled into expanding physical footprints and de-leveraging the balance sheet. According to the company's regulatory filings, the capital allocation strategy includes:

• Repayment or prepayment of outstanding debt obligations.
• Capital expenditure to launch new centres under its Cult Elite and Cult Neo formats.
• Capital investment in subsidiary brand Cultsport to open exclusive brand retail outlets.
• Funding lease-related obligations across existing network centres.
• Brand building, marketing campaigns, and general corporate purposes.

Operational Scale and Financial Profile

According to an industry report by Redseer cited in the draft prospectus, Cult.fit is India's largest organized fitness platform. As of March 31, 2026, the company operated 708 fitness centres across 77 Indian cities, representing roughly four times the footprint of its nearest organized competitor.

The platform recorded 987,020 paying transacting members during the 2026 financial year. Its fitness products vertical, which markets sportswear, footwear, cycles, and workout gear through online marketplaces and retail channels, shipped over 4.23 million products in FY26. Fitness services represent approximately 70% of total revenue, with physical products generating the remaining 30%.

Financially, Cult.fit's revenue from operations rose 36.26% year-on-year to ₹1,720.61 crore in FY26, up from ₹1,265.74 crore in FY25 and ₹926.66 crore in FY24. Operating profitability turned positive over the period, with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin improving to 8.41% in FY26 compared to -2.76% in FY25.

Broader Approvals in the IPO Pipeline

The regulatory nods mark continuing momentum in India's primary market. The approval for Indian Gas Exchange (IGX) allows the country's automated natural gas trading platform to pursue public listing, while clearances for post-harvest agri-logistics specialist Sohan Lal Commodity Management and recycling entity Eswari Global Metal Industries broaden the sectoral pipeline for domestic retail and institutional investors. Cult.fit is expected to announce its price band and issue opening dates closer to launch.

Tags: Cult.fit SEBI IPO Indian Gas Exchange Primary Market Consumer Services