Jerai Fitness Files DRHP for IPO, to Offer 43.92 Lakh Shares Via OFS

Jerai Fitness Limited has filed its Draft Red Herring Prospectus (DRHP) with SEBI for an upcoming IPO. The issue will be a 100% Offer for Sale (OFS) of 43,92,500 equity shares, each with a face value of ₹10. The company has not yet disclosed the price band, total issue size, or subscription dates. The shares will be listed on both NSE and BSE once approvals are in place.

IPO Snapshot

The IPO is a book-built issue consisting entirely of an OFS, meaning no new funds will flow to the company. Proceeds will go to the selling shareholders, including promoters Rajesh Ramsukh Rai, Rinku Rajesh Rai, and Rajesh Ramsukh Rai HUF. Emkay Global Financial Services and Catalyst Capital Partners are the book-running lead managers. Bigshare Services has been appointed as the registrar to the issue, with listing planned on both exchanges.

The offer will be allocated to qualified institutional buyers (QIBs), non-institutional investors (NIIs), and retail investors. An anchor investor portion may also be considered as per SEBI guidelines. Since it is an OFS, the company’s capital structure will remain unchanged post-listing. The IPO will provide liquidity to promoters while creating an opportunity for public investors.

Company Background

Incorporated in 1994 and headquartered in Mumbai, Jerai Fitness manufactures a wide range of strength training equipment. It also trades in cardiovascular machines, which are sourced from third-party vendors. The company operates under the well-known “Jerai Fitness” brand across India’s fitness industry. Its portfolio spans 11 product categories including Proton, X-Tend, Clubline Plus, Falcon, Load-On, benches, racks, JX Fit, and home gym accessories.

Jerai’s customer base includes commercial gyms, sports institutions, and individual fitness enthusiasts. The firm has established itself as a reliable supplier of quality products with strong market recognition. As gym culture and health awareness expand in India, Jerai is well-positioned to benefit from rising demand. The company has also made inroads internationally, though exports currently remain a small portion of sales.

Financial Performance

For FY25 (Ind AS), Jerai Fitness posted revenue of ₹1,280.46 million, with profit after tax of ₹234.01 million. Net worth stood at ₹1,045.65 million, supported by low borrowings of ₹14.85 million. Earnings per share came in at ₹13.37, with return on equity of 25.19%, signalling strong shareholder returns. Capacity utilisation was at 69.63% of 21,000 units, with exports contributing 7.70% of sales.

The company has demonstrated a healthy balance sheet with steady growth. Its moderate leverage and consistent cash flows provide financial stability. Margins have been robust, reflecting efficiency in manufacturing and cost management. Strong domestic demand has been the main driver of growth, supported by recurring orders from fitness chains and institutional clients.

Promoters And Shareholding

The promoters of Jerai Fitness are Rajesh Ramsukh Rai and Rinku Rajesh Rai, who together hold 100% of the equity. The DRHP notes that promoter contributions and lock-in provisions will be applied as per SEBI guidelines. Post-offer, promoter shareholding will reduce as a result of the OFS. The listing will broaden the shareholder base while giving retail investors an opportunity to participate in the brand’s growth.

Key Strengths And Risks

The company’s strengths include established branding, diversified strength product lines, and a growing fitness culture in India. Its ability to generate consistent margins and maintain low borrowings supports future expansion. However, reliance on commercial gyms for a large share of revenue is a concentration risk. Raw material costs and supply chain fluctuations may also impact profitability and delivery schedules.

Conclusion

Jerai Fitness’s IPO will give investors exposure to India’s expanding fitness equipment industry. With strong financials, low debt, and a recognised brand, the company enters the market on a solid footing. The OFS will provide liquidity for promoters while expanding investor participation. Upcoming disclosures on issue size and price band will be closely watched ahead of the listing.

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