Cult.fit IPO Faces Legal Challenge Over CULT Trademarks

TL;DR

1. Cult.fit faces legal challenge on CULT Trademark registered under its subsidiary Cultfit Healthcare Pvt Limited.

2. Madras Highcourt has issued notice raising concerns over the ownership.

Introduction

The much-awaited Cult.fit IPO has hit a fresh legal hurdle with Madras High Court issuing notice on a petition challenging the CULT trademark registration.The dispute directly involves the IPO-bound Cult.fit Ltd’s subsidiary, Cultfit Healthcare Pvt Ltd, which is the registered owner of the trademark. The case has sparked discussions on trademark ownership and IPO disclosures and is being watched by investors tracking Cultfit Healthcare’s unlisted shares.

The row comes at a time when Cult.fit is set to go public, having got the regulatory go-ahead from the Securities and Exchange Board of India (SEBI) in October 2026. The court, however, did not cancel the trademark or rule that the documents in dispute were forgeries.

Why Is Cultfit Facing a Trademark Dispute?

The CULT trademark row relates to ownership and transfer of the fitness brand started in Bengaluru in 2015. On Nov. 11, 2026, Inc42 reported that Deepak Poduval had questioned the validity of the documents that were used to transfer the trademark to Cultfit Healthcare Pvt Ltd.

Poduval says his signatures on the trademark assignment deeds for 2017 are forged.He asked to cancel the trademark registration that is registered in the subsidiary's name.

Madras High Court. OP(TM) No. 51 of 2026, Notice dated 12.10.2026, Rectification Petition. The matter was then adjourned to December 2, 2026, for filing of response by Cultfit Healthcare.

Separately, Poduval has approached a Bengaluru Commercial Court seeking to have the disputed assignment deeds declared void. That matter is scheduled for November 16, 2026.

How Did the CULT Trademark Dispute Begin?

The disagreement traces back to the original CULT fitness business and the transfer of its assets and intellectual property.

The row has also involved CULT co-founder Rishabh Telang, who has denied allegations of past transfer of business.The transactions were done through valid contractual arrangements and requisite consideration was paid, Cult.fit has said.

What Has Cult.fit Said About the Allegations?

Cult.fit has denied the allegations about the validity of the trademark assignment papers. The company continues to assert that the CULT brand belongs to the Cult.fit group, ETEntrepreneur reports.

It has also claimed to have the necessary trademark registrations and supporting documentation.The courts will determine the final position of the law as the matter is sub judice.

How’s Cult.fit related to Cultfit Healthcare?

Cult.fit Ltd and Cultfit Healthcare Pvt Ltd are separate legal entities which are part of the same corporate group.It is important to understand the relationship between IPO developments and investments in Cultfit Healthcare unlisted shares.

Cult.fit Company Role:

1. The parent company and proposed IPO issuer, formerly Curefit Healthcare Pvt Ltd.

2. Cultfit Healthcare Pvt Ltd- subsidiary that operates fitness centers and is the registered owner of the CULT trademarks in question.

3. The Competition Commission of India in December 2025 approved a proposed restructuring involving Cultfit Healthcare, Curefit Services and the parent company.

The arrangement involved transferring some of the Cult Pass membership businesses to the parent company, merging the remaining Curefit Services business into Cultfit Healthcare and buying back the shares of the subsidiary held by the shareholders other than the parent company.

Subsequently, the National Company Law Tribunal approved the restructuring scheme on March 27, 2026.Cult.fit’s draft IPO prospectus of July 2026 also talks about the scheme.

This is an important distinction for investors. Holding Cultfit Healthcare unlisted shares is not the same as holding shares in the proposed IPO issuer, Cult.fit Ltd.Any entitlements to shareholders will be as per the approved restructuring scheme and relevant corporate records.

Cultfit Healthcare Unlisted Shares

You can check the daily prices of the unlisted shares from Stockify.

What will be the impact of the trademark dispute on Cult.fit’s IPO?

There is a trademark dispute on CULT and there might be further disclosure and legal scrutiny in the IPO process of Cult.fit. The breakthrough arrived in October 2026, with the company admitting in its draft prospectus that it had misstated the ownership of trademarks.

In its October 14 response to a complaint submitted to SEBI, the company clarified that the CULT trademarks were registered under its subsidiary, Cultfit Healthcare Pvt Ltd, rather than Cult.fit Ltd. It also undertook to correct the information in its final prospectus.

This distinction matters because the CULT name is associated with a substantial part of the group's fitness business.

The likely consequences are:

• IPO disclosures Investors may take into account the disclosure of the ownership dispute and proceedings relating thereto.

• Brand ownership: This legal decision may have implications for the rights to use the contested trade mark.

• Businesses. Any limitations on the brand could impact the company’s fitness centers and other businesses.

However, no court decision has been taken to confirm that the CULT trademark has been canceled and the dispute does not necessarily mean that the IPO will be delayed.

Cult.fit IPO: Issue size, latest financial performance

The legal spat notwithstanding, Cult.fit is moving ahead with its proposed public listing. SEBI came out with its final observations on the company's draft IPO papers on October 12, 2026. The development was reported on October 16.

According to the July 2026 draft prospectus, the proposed public issue comprises:

• Fresh issue: Up to Rs. 950 crore.

• Offer for sale: Up to 17.86 crore equity shares from existing shareholders.

• Proposed listing: BSE and NSE.

• Issue dates and price band: Not specified in the draft prospectus.

The company plans to use fresh issue proceeds for fitness centre expansion, repayment of certain borrowings, retail outlets, lease-related expenditure and promotional activities.

Cult.fit Financial Results: FY 2025 vs FY 2026

The company's latest restated consolidated financial information shows revenue growth alongside a reduction in losses.

Source: Cult.Fit dated July 2026

Verified standalone financial results of Cultfit Healthcare Pvt Ltd

The latest standalone financial figures for FY 2024–25.

Source: Cultfit Healthcare Financials

What Should Cult.fit Unlisted Share Investors Watch?

For investors following Cult.fit unlisted shares and IPO developments, the latest dispute introduces a legal risk that deserves attention.

Three things will be particularly important.

1. Hearings and Court Decisions

The Bengaluru Commercial Court hearing scheduled on November 16 and the Madras High Court proceedings on December 2 could throw more light on the matter.

2. Revised IPO disclosures

See the final red herring prospectus for Cult.fit's description of trademark ownership, pending litigation and related risks.

3. Valuation and pricing an IPO

The final price band and valuation of the IPO will be important to judge the investment opportunity.Investors should view these along with financial performance and legal developments.

Investors must make sure they are clear about the precise issuer and the securities involved, because shares in the subsidiary will not automatically mean shares in Cult.fit Ltd.

Conclusion

The cult.fit IPO has cleared one critical regulatory hurdle but the CULT trademark dispute is pending.The proceedings are significant for investors tracking unlisted shares of Cultfit Healthcare as the subsidiary holds the disputed trademark registration.

Investors should wait to see the group's restructuring, read the final IPO prospectus and observe the coming court hearings before making an investment judgment.

FAQs

What’s the update on the Cultfit IPO?

Madras high court issues notice on a petition for cancellation of registration of CULT trademark, as a dispute over trademark ownership of cult.fit brews.

Is Cult.fit IPO cleared by SEBI?

Yes, the company’s draft IPO papers received the final observations from the SEBI on October 12, 2026.

What is recommended IPO size issue of Cult.fit is recommended IPO size of issue?

The proposed IPO comprises a fresh issue of up to Rs 950 crore and offer for sale up to 17.86 crore shares.

Will the trademark dispute hold up the Cult.fit IPO?

The suit is pending. As of November 13, 2026 there is no confirmation that the dispute has delayed the IPO.