The initial public offering (IPO) for Rays of Belief, a prominent neurodevelopmental disorder (NDD) intervention platform, commenced subscriptions today, September 1. The company, operating under the brand Mom's Belief, is offering shares within a price band of Rs 227 to Rs 239 apiece. Investors can bid for a minimum of 62 equity shares and in multiples thereafter, with the issue set to close on Thursday, September 3.
IPO Details and Company Overview
Rays of Belief aims to raise approximately Rs 124-125 crore through this entirely fresh issue of 52.30 lakh equity shares. Incorporated in 2017 and based in New Delhi, the company is recognized as India’s largest for-profit social enterprise specializing in personalized intervention plans for children with NDDs. These include conditions such as autism spectrum disorder (ASD), ADHD, Down syndrome, cerebral palsy, intellectual disability, learning disabilities, and global developmental delays. The company currently manages 136 centers across 57 cities in India and has recently expanded into the United States.
The net proceeds from the IPO are earmarked for several strategic initiatives, including establishing new learning centers, funding an upskilling academy, developing school collaboration centers, and investing in a center for excellence and research. Further allocations include technology enhancements, lease payments, investment in its US-based subsidiary, and general corporate purposes.
Financial Performance and Valuations
For the financial year ending March 31, 2026, Rays of Belief reported a net profit of Rs 4.96 crore on a total revenue of Rs 82.06 crore. In the preceding fiscal year (FY25), the company posted a net profit of Rs 5.88 crore with revenues of Rs 36.54 crore.
Ahead of its public debut, Rays of Belief successfully raised Rs 50 crore from five anchor investors, allocating 20,92,190 equity shares at Rs 239 each. Notable anchor investors included Viney Growth Fund, LRSD Securities, and Nova Global Opportunities Fund PCC.
Expert Opinions and Key Risks
Brokerage houses have offered mixed to positive views on the IPO. Swastika Investmart issued a 'neutral' rating, acknowledging the company's expansion across India and the US as a growth driver and improved operating margins. However, they highlighted concerns such as a relatively short profitability track record, negative operating cash flow in FY26, and execution risks associated with aggressive expansion plans. The absence of directly comparable listed peers also makes valuation assessment challenging.
Conversely, BP Equities recommended a 'subscribe for long-term' rating, citing Rays of Belief's leadership in a niche and underpenetrated market, scalable asset-light expansion model, significant planned center rollout, and a sizeable US growth opportunity as compelling long-term prospects. Master Capital Services also viewed the IPO as a potential long-term investment opportunity, underscoring the company's strong position to benefit from the growing demand for NDD intervention and therapy services.
Ventura Securities also gave a 'subscribe' rating but pointed out key risks including high employee costs, rising receivables, and operating cash burn. Investors should carefully weigh these factors, including the demanding valuation and related-party receivables, before making an investment decision.
Grey Market Premium and Listing Details
In the grey market, Rays of Belief shares were reportedly commanding a premium of Rs 48-50 per share, indicating a potential listing gain of 20-21 percent for investors. The company has reserved 75 percent of the net issue for qualified institutional bidders (QIBs), 15 percent for non-institutional investors (NIIs), and 10 percent for retail investors.
Mefcom Capital Markets is the sole book-running lead manager for the IPO, with Kfin Technologies Ltd serving as the registrar. Shares of Rays of Belief are slated to be listed on both BSE and NSE on Tuesday, September 8.