Cult.fit Receives Regulatory Approval for India IPO

Indian fitness chain Cult.fit has received clearance from the Securities and Exchange Board of India (SEBI) for its planned Initial Public Offering (IPO). The company can now proceed with its intention to raise over ₹950 crore (approximately $115 million) through a public listing.

SEBI issued its final observations on the company's offer documents on October 12, signaling regulatory approval. Cult.fit had initially filed its draft prospectus in July. The IPO is expected to consist of a fresh issue of shares worth up to ₹950 crore and an offer for sale of existing shares.

The total size of the IPO is anticipated to be around ₹4,000 crore (approximately $480 million). Early investors, including Temasek Holdings, Schroders Capital, and Tata Digital, are reportedly planning to divest some of their holdings as part of the offer for sale. These investors have backed the company in its previous funding rounds.

Cult.fit plans to utilize the capital raised from the fresh issue for establishing new fitness centers, covering lease and licensing expenses, repaying borrowings, and for marketing activities. Founded in 2016, the company operates a widespread network across India and also offers online classes. Its revenue saw significant growth in the last fiscal year, while its net losses narrowed.