IPO buzz: Cult.fit files DRHP; Manipal Health, Rentomojo get SEBI nod this week

India’s IPO pipeline continues to gain momentum, with at least three companies—Manipal Health Enterprises, Rentomojo and Cult.fit—filing draft papers and securing SEBI’s approval this week.

Apart from this, during the week the primary market will see mainboard initial public offerings (IPOs) of Kusumgar Ltd and Laser Power & Infra open for subscription. SME issues that will hit the primary market include Happy Steels and Devson Catalyst.

Cult.fit IPO

The fitness and wellness platform on Tuesday, July 7, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its proposed IPO.

The issue comprises a fresh issue of equity shares worth up to ₹950 crore and an Offer for Sale (OFS) of up to 17.86 crore equity shares by existing shareholders.

According to the DRHP filing, the Zomato-backed firm plans to use ₹217.5 crore towards lease and rental payments for existing fitness centres, ₹120 crore for repayment or prepayment of borrowings, and ₹75 crore for brand marketing and business promotion. The remaining proceeds will be used for general corporate purposes.

Further, Cult.fit has raised over $714 million across 16 funding rounds, with its most recent valuation reaching approximately ₹12,600 crore ($1.5 billion). at around ₹12,600 crore ($1.5 billion). Apart from Zomato, the other investors for the company include Temasek, Accel, Kalaari Capital, Chiratae Ventures and Tata Digital.

Rentomojo

Online rental and subscription platform Rentomojo Ltd has received SEBI’s go-ahead for its proposed IPO. The proposed issue comprises a fresh issue of equity shares aggregating up to ₹150 crore and an OFS of 2.84 crore equity shares by existing shareholders, according to the DRHP.

The regulator received the company's draft papers on April 1 and gave its observations on July 6, the update showed. In SEBI parlance, the issuance of observations implies its approval to float the IPO.

According to the draft papers, the company proposes to utilise the net proceeds from the fresh issue towards payment of loans, payment of lease rentals or licence fees for warehouses and experience stores, and general corporate purposes.

Manipal Health Enterprises

Manipal Health Enterprises on July 6 got the market regulator's approval to raise funds through IPO comprising a fresh issue of shares worth ₹8,000 crore.

Along with a fresh issue, there will be an OFS of up to 4.32 crore equity shares by promoters Imperius Healthcare Investments Pte Ltd and Manipal Education and Medical Group India Pvt Ltd, according to the draft papers filed in March.

Other shareholders participating in the OFS are TPG SG Magazine Pte Ltd, Seventy Second Investment Company LLC, Ammar Sdn Bhd, Novo Holdings Invest Asia A/S and Phoenix Bear Investments, LLC.

According to the draft papers, proceeds from the fresh issue will be used to repay or prepay borrowings of the company's subsidiary, Manipal Hospitals Pvt Ltd, with ₹5,378 crore earmarked for the purpose. Another ₹574 crore will be utilised to acquire the minority stake in step-down subsidiary Sahyadri Hospitals Pvt Ltd, while the remaining funds will be used for general corporate purposes.

The company may also consider a pre-IPO placement of up to ₹1,600 crore. If such a placement is completed, the size of the fresh issue will be reduced accordingly.

Manipal Health operates a pan-India network of multispecialty hospitals offering services ranging from outpatient care to tertiary and quaternary interventions.