Rays of Belief IPO Day 2: GMP holds at 16%; subscription hits 1.18x. Should you apply?

The Rays of Belief IPO has entered its second day of bidding, with investors having a three-day window to place their bids. The issue already received a healthy response on Day 1, particularly from retail investors.

Adding to the positive sentiment, the IPO commands a Grey Market Premium (GMP) of around 16%, signalling strong investor expectations ahead of its anticipated stock-market debut. While GMP is not an official indicator of listing gains, it offers a glimpse into the current sentiment surrounding the issue.

On the first day of bidding, the IPO was subscribed 1.18 times overall, against the 31.37 lakh shares on offer. The Retail Individual Investors (RII) category stood out, with the segment subscribed 6.51 times against the 5.23 lakh shares reserved for retail investors. With bidding now underway on Day 2, investors will watch closely to see whether subscription levels gain further momentum.


The Rs 125 crore IPO is entirely a fresh issue of 52.30 lakh shares, with the company setting the price band at Rs 227–Rs 239 per share.

The IPO will open for subscription on September 1, 2026, and close on September 3, 2026. The share allotment is expected to be finalised on September 4, while the tentative listing date on both the NSE and BSE is September 8, 2026.

Investors can bid for shares in lots of 62 shares. At the upper end of the price band, retail investors will need a minimum investment of Rs 14,818 for one lot.

Ahead of the public issue, Rays of Belief raised Rs 50 crore from anchor investors. The anchor bidding took place on August 31, 2026.

Mefcom Capital Markets Ltd. is the book-running lead manager for the issue, while Kfin Technologies Ltd. is acting as the registrar.

Rays of Belief IPO Subscription Status

The Rays of Belief IPO witnessed a strong response from retail investors on Day 1 of bidding, with the overall issue subscribed 1.18 times against the 31.37 lakh shares on offer.

The Retail Individual Investors (RII) category led the subscription race, with the portion subscribed 6.51 times against 5.23 lakh shares reserved for retail investors.

The Non-Institutional Investors (NII) segment, meanwhile, was subscribed 39%, with bids received against the 7.84 lakh shares offered.

The Qualified Institutional Buyers (QIB) segment, however, had yet to receive any bids against the 7.84 lakh shares reserved for the category.

Rays of Belief IPO GMP Today

The latest Grey Market Premium (GMP) for the Rays of Belief IPO stands at Rs 38, implying a premium of around 16% over the upper price band of Rs 239. Based on the current GMP, the estimated listing price of the Rays of Belief IPO is around Rs 277 per share.

IPO Objects of the Issue

The Company proposes to utilise the Net Proceeds of the Issue primarily towards expanding and strengthening its learning and education infrastructure. This includes setting up Company Learning Centres and centres in partnership with Licensed Professionals (Rs 26.88 crore), School Collaboration Centres (Rs 5.54 crore), a Centre for Excellence and Research (Rs 2.45 crore), and an Upskilling Academy (Rs 2.05 crore). The Company also plans to incur Rs 4.44 crore towards technology hardware and Rs 14.45 crore towards lease payments for its existing centres in India.

In addition, Rs 10.13 crore is proposed to be invested in its subsidiary, Moms Belief US Inc., towards lease/license payments for existing centres in the USA. The Company also proposes to spend Rs 10.21 crore on brand awareness and inclusive outreach programmes, while a portion of the Net Proceeds will be utilised for funding inorganic growth through unidentified acquisitions and general corporate purposes. The total estimated utilisation of the Issue proceeds is Rs 76.15 crore.

Financial Performance

Rays of Belief Ltd. reported a strong 125% year-on-year growth in total income, which increased from Rs 36.54 crore in FY25 to Rs 82.06 crore in FY26.

Despite the significant growth in revenue, the company’s profit after tax (PAT) declined by 16% from Rs 5.88 crore in FY25 to Rs 4.96 crore in FY26, indicating pressure on profitability during the period.

About Rays of Belief

Founded in 2017, Rays of Belief Ltd. is a social enterprise offering personalised care and intervention programmes for children with neurodevelopmental disorders, including autism, ADHD, Down Syndrome and cerebral palsy.

Under its Mom’s Belief brand, the company has expanded from 71 centres in FY23 to 136 centres across 57 cities and 20 states/UTs as of March 31, 2026, with a strong presence in Tier 2 and Tier 3 cities.

Its services include early intervention, occupational and language therapy, parental guidance and family support. The company had 340+ full-time clinical professionals as of March 31, 2026.

Should You Subscribe?

According to Master Capital Services, Rays of Belief Limited operates in a fast-growing NDD therapy market. India’s NDD market was valued at ₹52,623 million in CY25, with ASD, ADHD and cerebral palsy contributing around 73%.

The company is well positioned to benefit from rising awareness and demand for specialised therapies, with 136 centres across 57 cities, 340+ clinical professionals and over 58,000 children served. Its expansion into the US further strengthens its growth prospects.

Overall, investors may consider the IPO as a potential long-term investment opportunity, given the favourable industry outlook and the company’s expanding footprint.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)