Cult.fit has made a significant announcement regarding its partnership with Hrithik Roshan’s activewear brand, HRX, just ahead of its initial public offering (IPO). According to the company’s recent filing with the Securities and Exchange Board of India (SEBI), Cult.fit has ended its exclusive agreement with Extreme Brands LLP, which manages the HRX brand.
Cult.fit originally entered into this agreement on August 11, 2023, securing exclusive rights to the HRX brand. While the financial terms were not publicly disclosed, it was reported that the arrangement involved potential liabilities of around ₹30 crores. The draft filing confirms that this agreement has now been terminated, but it does not provide details on why this decision was made or how it might affect Cult.fit’s branding strategies in the future.
Additionally, the filing indicates that Hrithik Roshan plans to sell a portion of his shares through an Offer for Sale (OFS), with plans to sell about 6.33 lakh equity shares. Despite this partial sale, Hrithik will remain an investor in Cult.fit after the IPO.
Hrithik first invested in Cult.fit in May 2018, stepping in as the brand ambassador and putting in approximately ₹3.75 crores. His investment has significantly appreciated over time, with its current valuation estimated at around ₹25 crores. Interestingly, his affiliated entity, Extreme Brands LLP, also invested about ₹2.25 crores in the company.
As Cult.fit prepares to go public, it is planning a fresh issue of shares worth ₹950 crores alongside the aforementioned Offer for Sale by current shareholders. This marks a notable step for the Bengaluru-based fitness and wellness firm as it aims to broaden its financial horizons.
