Fitness and wellness platform Cult.fit has filed draft papers with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO) comprising a fresh issue of equity shares worth up to Rs 950 crore and an offer for sale (OFS) of up to 17.86 crore shares by existing investors and shareholders.
The total size of the offering will be determined after the price band is finalised. The Bengaluru-based company plans to list its shares on both the BSE and the NSE. It has filed its draft red herring prospectus (DRHP) directly with Sebi instead of using the confidential pre-filing route adopted by several new-age companies.
According to the DRHP, the company may also undertake a pre-IPO placement of up to Rs 190 crore. If completed, the amount raised through the placement will reduce the size of the fresh issue.
Existing shareholders participating in the OFS include Temasek-backed MacRitchie Investments, Tata Digital, Schroders Capital, Accel, Chiratae Ventures, Fitness First Luxembourg and other investors. Co-founder Mukesh Bansal and actor Hrithik Roshan are also among the shareholders offering part of their holdings for sale.
The company said it intends to use the proceeds from the fresh issue to expand its network of Cult Elite and Cult Neo fitness centres, meet lease, rent and licence-related payments for existing centres, repay borrowings, invest in its subsidiary Cultsport to open new exclusive retail outlets, fund brand marketing and business promotion, and for general corporate purposes.
Cult.fit joins a growing list of venture-backed consumer internet companies tapping India's public markets. People familiar with the matter had earlier indicated that the overall IPO size could be in the range of Rs 3,500 crore to Rs 4,000 crore, including the OFS component, although the final size will depend on the issue price and market conditions.
