Rays of Belief, the parent company of Mom's Belief that provides intervention plans for children with neurodevelopmental disorders, has maintained strong momentum on its second day of bidding on September 2, 2026. According to latest NSE data, the issue recorded 1.18 times subscription as of the second day, showing sustained investor interest after the initial day's performance. The IPO received bids for 36,99,168 equity shares against 31,37,810 shares on offer, with the company successfully raising more than ₹50 crore via anchor book on August 31. The retail investors led the subscription at 6.51 times their reserved portion, while the non-institutional investor (NII) portion was subscribed 0.39% during the second day of trading. The issue has attracted ₹88.74 crore worth of bids from 48,949 applications, as reported by The Financial Express.
The Grey Market Premium (GMP) has surged to ₹16 on the second day of bidding, indicating strong listing prospects for Rays of Belief. Based on this GMP as of 1:00 pm on September 2, the implied listing price is ₹277, suggesting a potential 16% gain over the IPO price. However, investors should note that grey market premiums are unregulated and highly vulnerable to price manipulation. As per grey market trends tracked over the last 13 sessions, the IPO's GMP has increased significantly, with the GMP ranging from ₹0 to ₹48 during this period. The IPO opened for subscription on September 1 and will remain open until September 3, with shares tentatively scheduled to list on both NSE and BSE on September 8, 2026. The company's high P/E ratio of 100x indicates an expensive valuation and suggests the stock is overvalued relative to current earnings, according to Religare Broking analysis.
For financial year 2026, Rays of Belief reported consolidated revenue of ₹81.66 crore, representing a 12% increase from the previous year, while operating profit surged 220% to ₹11.91 crore with operating margin improving significantly to 14.59% from 5.09% on a pro forma basis. However, profit after tax declined 25% to ₹4.96 crore, partly due to higher tax expenses. The company operates 136 centres across 57 cities in 20 states and Union Territories under the Mom's Belief brand as of March 31, 2026, and plans to add 319 centres between FY27 and FY29 using part of its IPO proceeds. The company also intends to pursue inorganic growth through acquisitions and strategic partnerships, while expanding internationally through its existing US operations and plans to enter the UAE and UK markets.
Swastika Investmart has issued a Neutral rating on Rays of Belief, citing encouraging growth prospects but flagging profitability, cash-flow and execution risks. 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 operating margins. However, it highlighted concerns including the company's limited track record of profitability, negative operating cash flow in FY26 and execution challenges linked to its aggressive expansion strategy. Master Capital Services recommended the IPO for 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 growth prospects in the behavioural healthcare segment.
The Rays of Belief IPO is structured with lots of 62 shares, requiring a minimum investment of ₹14,818 at the upper price band of ₹239 per share for retail investors. The issue is entirely a fresh issue of 52.30 lakh shares, with the company setting the price band at ₹227-239 per share and a face value of ₹10. The company had previously raised ₹5.0 crore through a pre-IPO private placement at ₹284 and ₹290 per share, with the proceeds adjusted against the fresh issue. The proceeds from the IPO will primarily support expansion plans, with ₹34.99 crore allocated for centre fit-outs, ₹1.93 crore for therapy material inventory, and ₹4.44 crore for technology hardware. The total estimated utilisation of issue proceeds is ₹76.15 crore, with ₹10.13 crore proposed for its subsidiary Moms Belief US Inc. towards lease/license payments for existing US centres and ₹10.21 crore for brand awareness and inclusive outreach programmes. The share allotment is expected to be finalised on September 4, 2026, with shares tentatively scheduled to list on both NSE and BSE on September 8, 2026.
