Cult.fit files DRHP for IPO: Rs 950 crore fresh issue amid five key risk flags
Cult.fit's IPO combines a Rs 950 crore fresh issue with an OFS from Tata Digital, Temasek, Accel and others. The DRHP flags narrowing but persistent losses (FY26 Rs 251.9 crore), 90.44% revenue from just four cities, 69.21% franchised centres, governance gaps and unpaid statutory dues as investor risks.
What happened
Cult.fit files DRHP for IPO with Rs 950 crore fresh issue plus OFS by Tata Digital, Temasek and others. Filing flags narrowing losses, city concentration,
Key facts
- Rs 950 crore fresh issue
- 17.86 crore shares OFS
- FY26 loss Rs 251.9 crore
- FY25 loss Rs 480.8 crore
- FY24 loss Rs 888.5 crore
- Adjusted EBITDA Rs 144.8 crore FY26
- 90.44% revenue from 4 cities
- 69.21% franchised centres
- Rs 55 crore litigation subsidiaries
- Rs 488 crore litigation directors
Why this matters
The Rs 950 crore fresh issue paired with an OFS from Tata Digital, Temasek and Accel marks a partial exit for early backers, opening windows for strategic partnerships or consolidation plays in the still-fragmented fitness retail space.
What to watch
- SEBI observations and final RHP pricing band
- Anchor book subscription and QIB demand levels
- FY27 interim numbers confirming loss-narrowing trajectory
- Peer new-age IPO performance (grey market premium sentiment)
- Resolution status of unpaid statutory dues
- Cult.fit clears statutory dues and tightens governance disclosures before RHP
- Anchor investor roadshows emphasizing EBITDA turnaround and franchise-light capex model
- Push geographic diversification narrative into tier-2 cities to counter concentration risk
- Existing PE/strategic holders calibrate OFS size to balance exit vs. signaling confidence