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Rays of Belief IPO Opens With GMP, Mixed Broker Reviews
Rays of Belief is selling shares to the public through an IPO.
People can apply between 1 September and 3 September at prices from ₹227 to ₹239 per share.
The company runs centres that provide therapy and support for children with developmental conditions.
It currently has 136 centres across 57 Indian cities.
The company wants to use much of the money raised to open 319 more centres.
Some investors in the grey market are offering about ₹48 to ₹50 above the highest IPO price.
This could mean a higher listing price, but grey market prices are unofficial and can change.
Swastika Investmart warned about cash flow, profitability and expansion risks.
Other brokerages said the company could benefit from growing demand and expansion in India and the United States.
Rays of Belief's ₹125 crore IPO is open from 1 to 3 September at ₹227–₹239 per share.
The entirely fresh issue comprises up to 52.30 lakh equity shares, with no offer-for-sale component.
The grey market premium was reported at ₹48–₹50, implying a possible 20–21% listing gain, though GMP is unofficial.
The company plans to use about ₹41.36 crore for 319 new centres between FY27 and FY29.
Brokerages differ: Swastika Investmart recommended neutrality, while BP Equities, Ventura Securities and Master Capital Services expressed long-term optimism.
- Who
- Rays of Belief Limited, which operates under the Mom's Belief brand.
- What
- The company is launching an IPO comprising up to 52.30 lakh fresh equity shares.
- Where
- The company operates 136 centres across 57 Indian cities in 20 states and union territories and has expanded into the United States.
- When
- Subscription runs from 1 September to 3 September, opening at 10:00 IST; listing is scheduled for 8 September.
- Why
- The IPO proceeds will fund expansion, including 319 new centres, along with technology, training, lease payments, a US subsidiary and general corporate purposes.
Risk-focused view
Growth-focused view
Investment recommendation
Risk-focused view
Swastika Investmart gave a Neutral view, citing the short profitability track record, negative operating cash flow in FY26 and execution risks from aggressive expansion.
Growth-focused view
BP Equities recommended subscribing for the long term, while Master Capital Services said investors could consider the IPO as a potential long-term opportunity.
Valuation and financial risks
Risk-focused view
Swastika Investmart said the lack of directly comparable listed peers makes valuation difficult to assess. BP Equities also flagged demanding valuation, related-party receivables and negative cash flow.
Growth-focused view
Growth-oriented brokerages pointed to the company's position in a niche, underpenetrated market and its asset-light expansion model as reasons for long-term potential.
Expansion outlook
Risk-focused view
The planned rollout of 319 centres could create execution challenges, while high employee costs, rising receivables and operating cash burn remain risks.
Growth-focused view
Master Capital Services and Ventura Securities highlighted the 136-centre network, more than 340 clinical professionals, multidisciplinary services, demand growth and three additional US centres.
Listing prospects
Risk-focused view
Grey market premiums are unofficial indicators and do not guarantee the actual listing price or long-term returns.
Growth-focused view
The reported ₹48–₹50 GMP suggested a possible 20–21% listing gain, with the premium having risen after fluctuating between ₹0 and ₹48 over 13 sessions.
Key facts
- IPO price band
- ₹227–₹239 per equity share; face value ₹10
- Issue size
- ₹125 crore, comprising up to 52.30 lakh fresh shares with no offer-for-sale component
- Grey market premium
- Reported at ₹48–₹50, suggesting an indicative 20–21% listing gain at the upper price band
- Expansion plan
- The company proposes to establish 319 new centres between FY27 and FY29
- Expansion allocation
- About ₹41.36 crore, including ₹34.99 crore for centre fit-outs, ₹1.93 crore for therapy materials and ₹4.44 crore for technology hardware
- Current operations
- 136 centres across 57 cities and 20 states and union territories, with more than 340 clinical professionals
- Anchor investment
- ₹50 crore raised from five anchor investors through 20.92 lakh shares allotted at ₹239 each
- Listing and intermediaries
- Mefcom Capital Markets is the book-running lead manager, Kfin Technologies is the registrar, and listing is planned on BSE and NSE
Quotes
Swastika Investmart
Brokerage that reviewed the Rays of Belief IPO
“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”
livemint.com
businesstoday.in
Sources
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