Cult.fit Receives SEBI Nod for ₹950 Crore Fresh Issue IPO: OFS Details, Expansion Plans, and Financials

Bengaluru / Mumbai: In the latest Cultfit IPO SEBI Approval, fitness and active wellness heavyweight Cult.fit (formerly Curefit Healthcare) has received the official observation letter from the Securities and Exchange Board of India (SEBI), granting the final regulatory green light to proceed with its multi-thousand crore initial public offering on the National Stock Exchange (NSE) and BSE.

SEBI Nod Clears Path for ₹950 Crore Fresh Capital and Major OFS

According to the Draft Red Herring Prospectus (DRHP) approved by the market regulator, the proposed public offering will comprise a fresh issuance of equity shares worth up to ₹950 crore, alongside an Offer for Sale (OFS) of up to 17,86,41,408 equity shares by existing early-stage backers, institutional investors, and company leadership.

Major selling shareholders in the OFS include Tata Digital Private Limited, Accel India, MacRitchie Investments (an affiliate of Singapore’s sovereign fund Temasek), and co-founder Mukesh Bansal. The regulatory approval marks one of the most prominent consumer-tech and health-wellness IPO clearances granted in the Indian market this fiscal year. (Also read: QSR Startup Banaraswala Raises Million Seed Funding to Expand Outlets Across Rajasthan and UP).

“Securing SEBI clearance validates Cult.fit’s structural turnaround, disciplined unit economics across Tier 1 and Tier 2 hubs, and the monetization resilience of its hybrid physical-digital fitness model.” — Primary Market Advisory Desk

• Fresh capital of ₹950 crore directly directed toward network scaling and balance sheet strengthening.
• Institutional sell-down allows long-term venture funds and strategic partners liquidity while retaining core stakes.
• Proposed dual listing on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

Cult.fit IPO Key Structure, Stakeholders & Capital Allocation

The table below details the approved offering framework, regulatory milestones, center footfall, and strategic allocation of funds for the Cult.fit public issue:

Strategic Fund Deployment: Debt Deleveraging and Gym Expansion

Cult.fit has outlined a clear capital deployment roadmap for the ₹950 crore fresh proceeds. A substantial portion of the net proceeds will be deployed toward the prepayment or full repayment of sanctioned borrowing facilities—including revolving working capital lines extended by Axis Bank—thereby reducing interest overheads and expanding operating cash flows.

Additionally, capital expenditure will be allocated toward opening new fitness centers under its flagship *Cult Elite* format and its high-density *Cult Neo* neighborhood models across emerging Tier 2 and Tier 3 markets. A dedicated tranche will also fund the expansion of exclusive brand outlets (EBOs) for its subsidiary brand *Cultsport*, which manufactures high-demand athleisure, smart wearables, and home workout equipment.

Operational Scale: 708 Centers and Diversified Revenue Streams

Founded in 2016 by Mukesh Bansal and Ankit Nagori, Cult.fit has transformed from a boutique group-fitness studio into India’s most comprehensive wellness ecosystem. As of March 31, 2026, the company operates 708 active fitness centers spread across 77 cities nationwide, serving millions of active subscription members.

The business maintains a resilient dual-engine revenue architecture: fitness club memberships and digital coaching subscriptions generate approximately 70% of total operational revenues, while consumer merchandise, footwear, nutritional supplements, and gym hardware sold via Cultsport account for the remaining 30%. With SEBI observation now formally issued, investment bankers Axis Capital, IIFL Securities, and Kotak Mahindra Capital are expected to launch the roadshow and announce price bands in the coming weeks. (Also read: Groww Expands Lead in India Stockbroking Race With 29.16% Market Share as Zerodha Slips).

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