Rays of Belief IPO opens today: Should you subscribe or skip? Price band, reviews, fresh GMP & more

The Rs 125 crore-initial public offering (IPO) of Rays of Belief (Mom's Belief) opens for subscription on Tuesday, September 01. The company will be selling its shares in the price band Rs 227-239. Investors can apply a minimum of 62 equity shares and multiple thereafter. The issue will close for bidding on Thursday, September 03.

Incorporated in 2017, New-Delhi based Rays of Belief is a for-profit social enterprise providing personalised intervention plans for children with neurodevelopmental disorders (NDDs), including autism spectrum disorder (ASD), ADHD, down syndrome, cerebral palsy, intellectual disability, learning disabilities and global developmental delays. It has 136 centers under its brand name Mom's Belief.

The company offers personalised NDD intervention services through a growing centre network. Its expansion across India and the US provides scope for further revenue growth and the operating margins have improved with increasing scale, said Swastika Investmart in its IPO note.

"However, it has a relatively short profitability track record, negative operating cash flow in FY26, and execution risks associated with its aggressive expansion plans. No directly comparable listed peers, making valuation assessment challenging. Growth prospects remain encouraging, but profitability, cash-flow and execution risks warrant a cautious stance," it added with a 'neutral' rating.

The IPO of Rays of Belief is entirely fresh issue of 52.30 lakh equity shares. The net proceeds from the issue shall be utilized towards learning centres with licensed professionals, upskilling academy, school collaboration centres, centre for excellence and research, technology cost, expenditure on lease payments, investment in US-based subsidiary and general corporate purposes.

The valuation is demanding and the related-party receivables and negative CFO remain important risks, its leadership position in a niche and underpenetrated market, scalable asset-light expansion model, significant planned centre rollout and the sizeable US growth opportunity provide a compelling long-term growth opportunity, said BP equities, with a subscribe for long-term rating.

Ahead of its IPO, Ray of Belief raised Rs 50 crore from five anchor investors as it allocated 20,92,190 equity shares at Rs 239 apiece. Its anchor book included names like Viney Growth Fund, LRSD Securities, Nova Global Opportunities Fund PCC, Visionary Value Fund and 31 Degreees North Fund 31.

Rays of Belief reported a net profit of Rs 4.96 crore with a total revenue of Rs 82.06 crore for the financial year ended on March 31, 2026. The company reported a net profit at Rs 5.88 crore with a total revenue of Rs 36.54 crore for the fiscal year 2024-25. At the current valuation, the company commands market capitalization slightly below Rs 500 crore.

Rays of Belief well-positioned to benefit from the growing demand for NDD intervention and therapy services. Its expansion into the United States through three additional centres further strengthens its growth opportunity in the behavioral health market. Investors may consider the IPO as a potential long-term investment opportunity, said Master Capital Services.

Rays of Belief is India’s largest neurodevelopmental disorder intervention platform, with 136 centres across 57 cities. The company combines in-person therapy, online services and school collaborations, said Ventura Securities with a 'subscribe' rating. However, it suggested high employee costs, rising receivables and operating cash burn as key risks for the company.

The company has reserved 75 per cent of the net issue for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will have 15 per cent and retail investors will get 10 per cent allocation in the IPO. Last heard, the company was commanding a grey market premium of Rs 48-50 apeice, suggesting a listing pop of 20-21 per cent for the investors.

Mefcom Capital Markets is the sole book running lead manager of Rays of Belief IPO and Kfin Technologies Ltd is the registrar of the issue. Shares of the company shall be listed on both BSE Ltd and NSE with September 08, Tuesday as the date of listing.