Archive · 2 Sep 2026
Rays of Belief IPO Draws Retail Demand, QIBs Hold Back
Rays of Belief is selling shares to raise money for its business.
Many individual, or retail, investors wanted to buy the shares.
Their demand made the IPO several times oversubscribed by the second day.
Larger non-institutional investors also began showing interest.
Big institutions, such as mutual funds and financial institutions, had placed almost no bids.
The company is offering shares between ₹227 and ₹239 each.
The company plans to use the money to expand centres, pay leases, and invest in its US subsidiary.
One brokerage said the company may have strong growth prospects but that its shares look expensive compared with its current profits.
Rays of Belief’s IPO was subscribed 1.18 times on day one and 3.61 times by 4:54 p.m. on September 2.
Retail investors led demand, with subscription reaching 6.49 times on day one and 18.56 times on day two.
Non-institutional investors moved from 0.39 times subscribed on day one to 2.06 times on day two.
Qualified institutional buyers showed minimal interest, at 0 times on day one and 0.01 times on day two.
Religare Broking gave the IPO a Neutral rating, citing an approximately 100-times P/E valuation and declining profit measures.
- Who
- Rays of Belief Limited, operator of Mom’s Belief and a neurodevelopmental disorder and children’s therapy care provider.
- What
- The company is conducting a ₹125 crore initial public offering through a fresh issue of 52.30 lakh shares.
- When
- The IPO opened on September 1 and was scheduled to close on September 3; second-day data was reported at 4:54 p.m. on September 2, 2026.
- Where
- The shares are expected to list on the NSE and BSE.
- Why
- The IPO proceeds are intended for expanding the centre network, lease payments, and investment in the company’s US subsidiary.
Positive demand signals
Valuation and institutional concerns
Investor interest
Positive demand signals
Retail investors showed strong demand, taking their subscription to 18.56 times by the second day, while the overall issue reached 3.61 times.
Valuation and institutional concerns
Qualified institutional buyers showed almost no participation, with only 0.01 times subscription on the second day and no recorded bids from mutual funds, FIIs, or domestic financial institutions.
Growth versus valuation
Positive demand signals
The IPO proceeds are intended to expand the centre network and support the US subsidiary, while revenue from operations was reported to have grown to ₹81.66 crore in FY26.
Valuation and institutional concerns
Religare Broking said the approximately 100-times P/E was expensive relative to current earnings and assigned a Neutral rating.
Profitability
Positive demand signals
The company’s reported growth prospects may support its expansion plans, according to the brokerage’s assessment.
Valuation and institutional concerns
Profit after tax declined to ₹4.96 crore from ₹5.88 crore a year earlier, while return on equity fell to 21.64% from 56.56%, raising concerns about profitability and capital efficiency.
- Issue size
- ₹125 crore through a fresh issue of 52.30 lakh shares.
- Price band
- ₹227–₹239 per share.
- Day-one subscription
- 1.18 times overall, based on bids for 36.99 lakh shares against 31.37 lakh shares offered.
- Day-two subscription
- 3.61 times overall as of 4:54 p.m. on September 2.
- Retail demand
- 6.49 times subscribed on day one and 18.56 times on day two.
- Institutional demand
- QIB subscription was 0 times on day one and 0.01 times on day two.
- Grey-market premium
- Reported at 15.90%, implying an estimated listing price of ₹277 at the upper price-band level; the premium is unregulated and does not guarantee returns.
- Expected listing
- September 8 on the NSE and BSE, according to the reported timeline.
