Tata Digital, which holds a 3.58% stake in fitness and wellness startup Cult.fit, plans to sell about half of its shares through an offer for sale (OFS), according to Cult.fit's draft red herring prospectus filed ahead of its initial public offering. This marks Tata Digital’s first share sale in the new-age company and signals a partial exit by the conglomerate from its investment in Cult.fit, as reported by livemint.com.
The decision to pare down its stake follows Tata Digital’s earlier move to forfeit some shares and halt further investments in Cult.fit. The OFS will allow Tata Digital to monetize part of its holding while enabling new investors to participate in the upcoming IPO. The move comes amid growing market interest in fitness startups and ahead of Cult.fit’s planned listing, which has attracted significant attention from investors and industry watchers.
This partial exit by Tata Digital is notable in the context of the evolving fitness and wellness sector in India, where startups like Cult.fit have gained prominence. The OFS and IPO are expected to set benchmarks for valuation and investor appetite in the sector. Comparable deals in the space have shown strong investor demand, reflecting the growing consumer focus on health and wellness services delivered through digital platforms.
Cult.fit’s IPO filing, which includes Tata Digital’s OFS, is a key milestone for the company’s growth trajectory. The draft red herring prospectus was filed recently, with the IPO expected to proceed in the near term. The exact dates and final share sale size will be disclosed as the listing process advances, providing clarity on the company’s capital raising and shareholder composition.