Bollywood actor Hrithik Roshan is preparing to sell a portion of his stake in fitness and wellness platform Cult.fit as the company moves forward with its initial public offering (IPO). According to the Draft Red Herring Prospectus (DRHP) filed with the Securities and Exchange Board of India (Sebi), Hrithik will sell 6,33,824 equity shares through the offer-for-sale (OFS) portion of the IPO.
Hrithik Roshan's Cult.fit Stake Sale Details
The actor, who has been associated with Cult.fit for several years as both an investor and a brand ambassador, is not exiting the business entirely. He will continue to hold equity in the company after the public issue, according to the DRHP. The filing indicates that before the IPO, Hrithik owns approximately 19.01 lakh equity shares in the company.
According to News18, the filing also lists several other selling shareholders who will participate in the OFS alongside Hrithik Roshan.
Cult.fit IPO Structure and Key Details
The Cult.fit IPO includes both a fresh issue of shares and an offer for sale by existing investors. The company aims to raise between Rs 3,500 crore and Rs 4,000 crore through the public offering, as reported by The Economic Times.
According to NDTV Profit, Hrithik Roshan is listed as a selling shareholder, offloading up to 6.33 lakh shares that were received via an NCLT-approved scheme of arrangement.
What This Means for Investors
The participation of a high-profile celebrity like Hrithik Roshan in the OFS is notable, but the fact that he is not fully exiting the business suggests confidence in Cult.fit's long-term prospects. The company operates in the growing fitness and wellness sector in India, which has seen increased demand post-pandemic.
Our Take: A Strategic Partial Exit
In our view, Hrithik Roshan's decision to sell only a portion of his stake — roughly one-third of his holdings — is a calculated move. It allows him to unlock some value from his investment while maintaining a significant ongoing interest in the company. This signals to the market that he believes in Cult.fit's future growth, even as the company transitions to a publicly traded entity. For retail investors, the presence of a celebrity investor who is not fully cashing out could be seen as a positive signal, but they should still evaluate the company's fundamentals independently.
