The initial public offering of Rays of Belief continued to garner strong investor interest on its third and final day of bidding, with the issue being subscribed nearly 14 times its offer size as grey market trends indicated a strong listing for the for-profit social enterprise.
The Rs 125-crore IPO of Rays of Belief received bids for around 4.28 crore shares, as against the offer size of 31 lakh shares, according to data on NSE at around 11.30 am. Retail investors have shown the most interest so far, subscribing their reserved portion a whopping 49 times.
Non institutional investors (NII) have booked their reserved portion nearly 21.5 times. Only the portion kept for Qualified Institutional Buyers (QIBs) is yet to be fully subscribed, as they have subscribed 4% of their quota so far.
Rays of Belief IPO GMP
The strong subscription numbers for Rays of Belief IPO comes as grey market trends signalled a strong market debut for the company. Ahead of listing, the unlisted shares of the company were trading with 20-23% grey market premium (GMP) over the IPO price, according to sites tracking the grey market.
However, it is important to note that the grey market is an unofficial market, and the actual listing may significantly differ from the grey market estimates.
About Rays of Belief IPO
Rays of Belief’s Rs 125 crore IPO entirely comprises a fresh issue of 52.30 lakh shares at a price band at Rs 227–Rs 239 per share. The maiden public issue of the company will remain open for subscription from September 1 to September 3, and the share allotments are expected to be finalised by September 4.
Investors can submit bids in the IPO in lots of 62 shares. At the upper end of the price band, retail investors will need a minimum investment of Rs 14,818 for one lot. The shares of the company are scheduled to be listed on stock exchanges on September 8. Ahead of the public issue, Rays of Belief raised Rs 50 crore from anchor investors on August 31.
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How will Rays of Belief IPO proceeds be used?
Rays of Belief proposed to use the net proceeds of the issue primarily towards expanding and strengthening its learning and education infrastructure. This includes setting up Company Learning Centres and centres in partnership with Licensed Professionals (Rs 26.88 crore), School Collaboration Centres (Rs 5.54 crore), a Centre for Excellence and Research (Rs 2.45 crore), and an Upskilling Academy (Rs 2.05 crore). The Company also plans to incur Rs 4.44 crore towards technology hardware and Rs 14.45 crore towards lease payments for its existing centres in India.
Another Rs 10.13 crore is proposed to be invested in subsidiary, Moms Belief US Inc, towards lease/license payments for existing centres in the USA. The company also proposes to spend Rs 10.21 crore on brand awareness and inclusive outreach programmes, while a portion of the net proceeds will be utilised for funding inorganic growth through unidentified acquisitions and general corporate purposes.
Rays of Belief reported a strong 125% year-on-year growth in total income, which increased from Rs 36.54 crore in FY25 to Rs 82.06 crore in FY26.
Despite the significant growth in revenue, the company’s profit after tax (PAT) declined by 16% from Rs 5.88 crore in FY25 to Rs 4.96 crore in FY26, indicating pressure on profitability during the period.
Should you subscribe to Rays of Belief IPO?
According to Master Capital Services, Rays of Belief Limited operates in a fast-growing NDD therapy market. India’s NDD market was valued at Rs 52,623 million in CY25, with ASD, ADHD and cerebral palsy contributing around 73%.
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The company is well positioned to benefit from rising awareness and demand for specialised therapies, with 136 centres across 57 cities, 340+ clinical professionals and over 58,000 children served. Its expansion into the US further strengthens its growth prospects.
Overall, investors may consider the IPO as a potential long-term investment opportunity, given the favourable industry outlook and the company’s expanding footprint.
