Bollywood actor and early investor Hrithik Roshan is set to offload 6,33,824 equity shares in the upcoming Initial Public Offering for fitness platform Cult.fit. The Bengaluru-based startup officially filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), outlining a fresh issue of shares worth up to Rs 950 crore.
The filing details an extensive Offer for Sale (OFS) component that will see up to 17.86 crore shares sold by existing investors. Market estimates project the total size of the IPO will reach between Rs 3,500 crore and Rs 4,000 crore, according to the Economic Times, supported by the company’s recent FY26 financial turnaround.
Key Details
- Roshan currently holds 19.01 lakh shares, accounting for a 0.20% stake in the company. He acquired his equity at an average cost of Rs 19.76 per share, verified by Business Today, and will retain the majority of his holding following the sale.
- The fresh issue proceeds will fund the expansion of Cult Elite and Cult Neo fitness centers, boost the activewear subsidiary Cultsport, and repay approximately Rs 120 crore in existing borrowings.
- Major institutional backers are heavily participating in the OFS sell-off. The DRHP confirms specific share volume exits: Temasek will sell up to 2.47 crore shares, Tata Digital up to 1.59 crore shares, and Chiratae Trust up to 2.81 crore shares. Co-founder Mukesh Bansal is also set to offload up to 1.60 crore shares.
How the FY26 Turnaround Justifies the Cult.fit Valuation
The decision by early investors to monetize their stakes coincides with a stabilization in the company’s core operations. Founded in 2016, Cult.fit operates 708 fitness centers across 77 cities and serves nearly one million paid subscribers. The firm recently posted a significant financial turnaround for FY26, recording Rs 1,720.6 crore in revenue.
The revenue figure is a 41.6% increase from FY25. The platform also achieved a positive adjusted EBITDA margin of 8.41%. By moving away from aggressive cash-burn strategies and focusing on center profitability, Cult.fit has positioned its Rs 4,000 crore valuation around established subscription revenues rather than projected user acquisition.