Cult.fit has received observations from the Securities and Exchange Board of India (Sebi) for its proposed initial public offering (IPO), the regulatory step that effectively amounts to clearance for the fitness chain operator to proceed with its share sale.

The proposed IPO comprises a fresh issue of shares of up to Rs 950 crore, along with an offer for sale (OFS) component through which existing shareholders can sell part of their stakes. Cult.fit intends to use the proceeds to repay debt, expand its network of fitness centres and strengthen its sportswear business. The structure pairs fresh growth capital for the company itself with a partial exit route for existing backers, a combination common in Indian public issues.

The company moves ahead with its public-market plans on the back of strengthening financials. Its revenue rose 36.26% in FY26, the fiscal year that ended in March 2026, while its adjusted EBITDA margin improved significantly as its fitness operations expanded nationwide. A listing would put one of India's most prominent fitness chains on public-market screens, offering direct visibility into economics of the country's organized fitness sector.

Founded in 2016 by Mukesh Bansal, co-founder of fashion marketplace Myntra, and Ankit Nagori, Cult.fit operates gyms and fitness centres across India alongside digital fitness offerings. Tata Digital, a unit of the Tata Group, acquired a majority stake in the company's parent, CureFit, in 2021.

Under India's IPO framework, Sebi issues its observations on a company's draft offer documents after reviewing their disclosures, and receiving such observations is regarded as the key regulatory clearance an issuer needs before launching a public issue. Attention now shifts to the remaining procedural milestones: filing of the red herring prospectus, announcement of the price band and bidding dates, and the eventual listing.

The development was reported by Economic Times Markets on October 16, 2026.