Rays of Belief IPO Day 2: Issue subscribed 1.93x so far. GMP signals 16% listing pop. Apply or not?

Rays of Belief IPO has entered its second day of bidding on Wednesday, 2 September. The ₹125 crore IPO will remain open till Thursday, 3 September.

The price band for the Rays of Belief IPO has been set at ₹227– ₹239 per equity share, with each share carrying a face value of ₹10.

The IPO is currently commanding a grey market premium (GMP) of ₹38. Based on the upper price band of ₹239 and the prevailing GMP, the indicative listing price is estimated at ₹277 per share, implying a potential premium of 15.90% over the issue price.

As per grey market trends tracked over the last 13 sessions, the IPO’s GMP has increased to ₹48 today, indicating expectations of a strong listing. During this period, the GMP has ranged from ₹0 to ₹48.

Rays of Belief IPO subscription status

The Rays of Belief IPO has been subscribed over 1.93 times so far by the second day of bidding.

The retail portion has been booked 10.51 times, meanwhile, non institutional investors(NIIS) has received 0.71 times subscription. QIB section remained unsubscribed so far.

Rays of Belief IPO review

Swastika Investmart said Rays of Belief Limited, which operates under the Mom’s Belief brand, provides personalised intervention services for Neurodevelopmental Disorders (NDDs) through an expanding network of centres. The brokerage noted that the company’s growing presence across India and the US could support further revenue growth, while rising scale has helped improve its operating margins.

However, Swastika Investmart flagged several risks, including the company’s limited track record of profitability, negative operating cash flow in FY26 and execution challenges linked to its aggressive expansion strategy. The lack of directly comparable listed peers also makes it difficult to assess the company’s valuation.

“Our view is Neutral. Growth prospects remain encouraging, but profitability, cash-flow and execution risks warrant a cautious stance,” Swastika Investmart said.

Master Capital Services said the Rays of Belief IPO could be considered by investors with a long-term investment horizon, citing the favourable industry outlook and the company’s growing market presence.

The brokerage highlighted the company’s expansion in the US through three new centres, noting that the move could further enhance its growth prospects in the behavioural healthcare segment.

Rays of Belief IPO details

The Rays of Belief IPO will consist entirely of a fresh issue of up to 52.30 lakh equity shares, with no offer-for-sale (OFS) component.

The company had previously raised ₹5.89 crore through a pre-IPO private placement, with the proceeds adjusted against the fresh issue. As a result, the proposed issue size was cut from the 60 lakh equity shares outlined in the updated draft papers filed in February. According to the Red Herring Prospectus (RHP) filed on August 19, the pre-IPO placements were carried out at ₹284 and ₹290 per share.

The proceeds from the IPO will primarily support Rays of Belief’s expansion plans, which include setting up 319 new centres between FY27 and FY29. Of the proposed ₹41.36 crore allocation, around ₹34.99 crore will be spent on centre fit-outs, ₹1.93 crore on therapy material inventory and ₹4.44 crore on technology hardware.

Mefcom Capital Markets has been appointed as the book-running lead manager for the IPO, while Kfin Technologies will act as the registrar to the issue.

Rays of Belief operates as a for-profit social enterprise focused on providing personalised intervention programmes for children with neurodevelopmental disorders (NDDs). Its services cover conditions such as 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.