SEBI Approves Cult.fit’s Rs 950 Crore IPO
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Khushi Jain
- October 16, 2026
Markets regulator SEBI has given its approval for fitness chain Cult.fit’s Rs 950 crore initial public offering (IPO), around three months after the company filed its draft red herring prospectus (DRHP) with the regulator.
According to SEBI’s latest processing status, the regulator issued its final observation on Cult.fit’s offer documents on October 12. In SEBI terminology, the issuance of final observations allows a company to proceed with its public issue.
Cult.fit filed its DRHP in July this year. The IPO will comprise a fresh issue of shares worth up to Rs 950 crore and an offer for sale (OFS) of up to 17.86 crore shares. According to sources, the total IPO size is likely to be around Rs 4,000 crore.
Early Investors to Offload Shares Through OFS
Early investors and shareholders planning to sell shares through the OFS include Temasek Holdings, through MacRitchie Investments, Schroders Capital, German fitness operator LifeFit Group, Accel, Tata Digital and cofounder Mukesh Bansal.
Cult.fit plans to use the proceeds from the fresh issue to establish new gym centres and cover expenditure related to leasing, renting and licensing existing identified fitness centres. The company also intends to use the funds for 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 to the issue.
Cult.fit’s Business and Fitness Centre Network
Founded in 2016, Cult.fit operates a chain of gyms and fitness centres and offers online classes focused on physical and mental wellbeing.
As of March 31, 2026, the company operated 708 fitness centres across 77 cities in India and had more than 9.87 lakh paid members.
Of the total fitness centres, 218 were owned and operated by Cult.fit. Franchisees owned or operated another 288 centres, while independent owners accounted for 202 centres.
Cult.fit Narrows Loss in FY26
Cult.fit narrowed its net loss to Rs 251.8 crore in FY26 from Rs 480.8 crore in FY25.
The company reported operating revenue of Rs 1,720.6 crore in FY26, marking a 41.5% increase from Rs 1,215.5 crore in the previous fiscal year.
Cult.fit has a diversified revenue profile, with fitness services contributing roughly 70% of its revenue and its fitness products business accounting for the remaining 30%.
Cult.fit’s Funding History
Cult.fit has raised over $800 million to date from investors including Zomato, Accel, Kalaari Capital, Chiratae Ventures and South Park Commons, among others.
With SEBI issuing its final observation on the offer documents, the company has received regulatory clearance to proceed with its proposed IPO.
FAQs
1. How much is Cult.fit planning to raise through its IPO?
Cult.fit plans a fresh issue of shares worth up to Rs 950 crore. The total IPO size is likely to be around Rs 4,000 crore, according to sources.
2. When did SEBI issue its final observation on Cult.fit’s IPO?
SEBI issued its final observation on Cult.fit’s offer documents on October 12.
3. Which investors are expected to sell shares in Cult.fit’s IPO?
The shareholders planning to offload shares include Temasek Holdings, through MacRitchie Investments, Schroders Capital, LifeFit Group, Accel, Tata Digital and cofounder Mukesh Bansal.
4. How many fitness centres did Cult.fit operate as of March 31, 2026?
Cult.fit operated 708 fitness centres across 77 cities in India and had more than 9.87 lakh paid members.
5. How did Cult.fit perform financially in FY26?
Cult.fit reported operating revenue of Rs 1,720.6 crore, up 41.5% from FY25, while its net loss narrowed to Rs 251.8 crore from Rs 480.8 crore.
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