Hrithik Roshan's HRX exits Cult.fit brand partnership ahead of IPO; actor to remain investor
Here's the latest update from the Bollywood world:
Cult.fit has ended its exclusive HRX brand agreement ahead of its IPO, while Hrithik Roshan will partially sell shares through the OFS and remain an investor.
Adding to this, Cult.fit had entered into an agreement with Extreme Brands LLP on August 11, 2023, securing perpetual and exclusive rights to the HRX brand. While the company did not disclose the annual consideration for the arrangement, the agreement as per reports carried a contingent liability of nearly Rs 30 crores.
Meanwhile, The latest DRHP, however, confirms that the agreement has now been terminated. The filing has not disclosed the reasons behind the decision or whether the move will have any impact on Cult.fit's branding strategy going forward.
Notably, The DRHP also reveals that Hrithik Roshan will participate in the Offer for Sale by selling 6.33 lakhs equity shares. Despite the partial divestment, the star will continue to remain an investor in the company after the IPO.
As per the latest buzz, Hrithik first invested in Cult.fit in May 2018 when he came on board as the company's brand ambassador. He as per reports invested around Rs 3.75 crores, and the value of that stake has grown significantly over the years. Based on Cult.fit's latest valuation, the investment is estimated to be worth approximately Rs 25 crores.
In further updates, Alongside the star, his affiliated entity, Extreme Brands LLP, also invested around Rs 2.25 crores in the company.
On top of that, The development comes as the Bengaluru-based fitness and wellness company prepares to go public with a proposed fresh issue of shares worth Rs 950 crores, along with an Offer for Sale (OFS) by several existing shareholders.
Source: Bollywood Hungama