Rays of Belief IPO has entered its last day of bidding on Thursday, 3 September. Traders who wish to invest have a last chance to place their bids today.
The mainboard IPO, which opened for bidding on 1 September, has so far received a strong response from investors.
The IPO is currently trading at a grey market premium (GMP) of ₹59. At the upper price band of ₹239 per share, this translates into an estimated listing price of ₹298, representing a potential gain of 24.69% over the issue price.
However, grey market trends tracked over the past 15 sessions show that the GMP has risen to ₹59 today, signalling expectations of a strong listing. During this period, the GMP has fluctuated between ₹0 and ₹59.
Rays of Belief IPO subscription status
The Rays of Belief IPO has been subscribed over 13.63 times so far by the last day of bidding.
The retail portion has been booked 49.33 times, meanwhile, non institutional investors(NIIS) has received 21.54 times subscription. QIB section has received 0.04 times.
Rays of Belief IPO review
Swastika Investmart said Rays of Belief Limited, which operates under the Mom’s Belief brand, offers personalised intervention services for Neurodevelopmental Disorders (NDDs) through its growing network of centres. The brokerage noted that the company’s expanding footprint across India and the US could drive further revenue growth, while increasing scale has also contributed to an improvement in operating margins.
However, Swastika Investmart highlighted key concerns, including the company’s relatively short history of profitability, negative operating cash flow in FY26 and execution risks arising from its aggressive expansion plans. The absence of directly comparable listed peers also makes it challenging to evaluate the company’s valuation.
The brokerage maintained a “Neutral” stance on the IPO, stating that while the growth outlook remains positive, risks related to profitability, cash flows and execution call for a cautious approach.
Meanwhile, Master Capital Services said the Rays of Belief IPO may be suitable for investors with a long-term perspective, supported by the favourable outlook for the industry and the company’s expanding market presence.
The brokerage also pointed to Rays of Belief’s expansion in the US with the addition of three new centres, saying the move could strengthen the company’s growth prospects in the behavioural healthcare segment.
Rays of Belief IPO details
The Rays of Belief IPO will comprise entirely of a fresh issue of up to 52.30 lakh equity shares, with no offer-for-sale (OFS) component.
The company had earlier raised ₹5.89 crore through a pre-IPO private placement, with the proceeds adjusted against the fresh issue. Consequently, the proposed issue size was reduced from the 60 lakh equity shares mentioned in the updated draft papers filed in February. As per the Red Herring Prospectus (RHP) filed on August 19, the pre-IPO shares were allotted at ₹284 and ₹290 apiece.
Rays of Belief plans to utilise the IPO proceeds largely towards its expansion strategy, which involves establishing 319 new centres between FY27 and FY29. Out of the proposed ₹41.36 crore allocation, approximately ₹34.99 crore will be used for centre fit-outs, ₹1.93 crore for therapy material inventory and ₹4.44 crore for technology hardware.
Mefcom Capital Markets has been appointed as the book-running lead manager for the issue, while Kfin Technologies will serve as the registrar.
Rays of Belief is a for-profit social enterprise that provides personalised intervention programmes for children with neurodevelopmental disorders (NDDs). Its offerings cater to children with conditions including autism spectrum disorder, ADHD, Down Syndrome, cerebral palsy, intellectual disability, learning disabilities and global developmental delays.
The company’s equity shares are proposed to be listed on both the BSE and NSE on or around September 8.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
