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IPO closes on 3 Sep'26

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Rays of Belief Limited

Minimum Investment

14,818 / 62 shares

Our Verdict:

Neutral

  • Rays of Belief (Mom's Belief) is India's largest network by centre count offering intervention plans for children with neurodevelopmental disorders (autism, ADHD, Down Syndrome, cerebral palsy and others); revenue grew from ₹30.61 crore (FY24) to ₹81.66 crore (FY26), and EBITDA margin expanded from 4.87% to 14.59%.
  • Despite revenue more than doubling and EBITDA nearly quadrupling in FY26, PAT actually fell from ₹5.88 crore (FY25) to ₹4.96 crore (FY26) — rising depreciation, finance costs and tax outpaced the operating improvement, so the bottom line hasn't kept pace with the top-line and EBITDA story.
  • Price Band ₹227–₹239; Issue of ₹125 crore, entirely Fresh Issue (no OFS); Lot Size 62 shares. Anchor Aug 31, Opens Sept 1, Closes Sept 3, Allotment Sept 4, tentative Listing Sept 8, 2026 on BSE/NSE. GMP has climbed steadily through the run-up — from ~₹6 (Aug 28) to ~₹30 (Aug 31) to ~₹48 (~20%) as of Sept 1, the opening day.
  • Over a quarter of FY26 revenue (25.56%) comes from services exported to the Company's own Singapore-based Holding Company and a Promoter Group entity, and the vast majority of centres (including all overseas ones) operate on short leases of 11 months to 3 years — two concentration points worth weighing against the growth story.
  • This is a genuinely differentiated, category-leading business in an underserved niche with a clean compliance record and improving margins, but the related-party revenue concentration, lease dependency, declining PAT despite strong topline growth, and unidentified expansion sites for the issue proceeds are all real considerations — worth treating as an early-stage growth story rather than an already-proven, steady compounder.


About the company

Founded in

1 Jan'17

Managing director

Nitin Bindlish

  • Rays of Belief, operating under the 'Mom's Belief' brand, is a for-profit social enterprise that provides personalised intervention plans for children with Neurodevelopmental Disorders (NDDs), including Autism Spectrum Disorder, ADHD, Down Syndrome, Cerebral Palsy, Intellectual Disability, Learning Disabilities and Global Developmental Delays.
  • Services span early intervention, parental guidance, occupational therapy, language therapy and family support programs for children aged 18 months to 12 years (with vocational/life-skills programs up to age 15); the Company has served upwards of 58,000 children since commencing operations in 2018.
  • § As of March 31, 2026, the Company ranked #1 in India by number of centres offering NDD intervention plans, operating 136 centres across 57 cities and 20 states/union territories in India, plus 3 centres in the United States via a step-down subsidiary.
  • Promoters: Nitin Bindlish (Managing Director, holding 0.29% pre-Offer) and Carving Futures Pte. Ltd. (a Singapore-incorporated entity, holding 91.43% pre-Offer and serving as the Company's Holding Company).


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STRENGTHS

  • Category Leadership in a Niche, Underserved Market: Ranked #1 in India by number of centres offering intervention plans for children with neurodevelopmental disorders (NDDs), and #7 globally among listed behavioural-health peers, per the CARE Report — with no direct Indian listed peers.
  • § Revenue and Margin Growth: Revenue from operations grew from ₹30.61 crore (FY24) to ₹81.66 crore (FY26); EBITDA margin expanded from 4.87% to 14.59% over the same period.
  • Broad Geographic Reach: Operates 136 centres across 57 cities and 20 states/union territories in India (42 in Tier 1, 77 in Tier 2, 17 in Tier 3 cities), plus 3 centres in the United States via a step-down subsidiary.
  • Asset-Light, Scalable Model: All centres operate on leased premises, allowing new-centre rollout with limited upfront capital expenditure.
  • § Clean Compliance Record: No auditor qualifications, reservations or adverse remarks, and no litigation proceedings pending against the Company, its Promoters, Directors, KMPs or Senior Management.



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RISK FACTORS

  • Related-Party Revenue Concentration: 25.56% of FY26 revenue came from export of support services to the Company’s own Holding Company/Corporate Promoter (Carving Futures Pte. Ltd.) and a Promoter Group entity (Carving Futures Inc.); any adverse change in this arrangement could materially affect revenue.
  • Leasehold Dependency: 91 of 136 India centres, plus the Registered Office, Corporate Office and all US centres, operate on leased premises with tenures of just 11 months to 3 years; non-renewal or relocation could result in unrecoverable fit-out costs.
  • PAT Declined Despite Revenue and EBITDA Growth: PAT fell from ₹5.88 crore (FY25) to ₹4.96 crore (FY26) even as revenue more than doubled and EBITDA nearly quadrupled, reflecting rising depreciation, finance costs and tax that outpaced operating growth.
  • Unidentified Expansion Sites and Unappraised Proceeds: The Company has not yet identified the exact locations for its planned new centres, and the funding requirements have not been appraised by any bank or financial institution.
  • § Negative Operating Cash Flows: The Company reported negative cash flow from operating activities in FY25 (₹1.81 crore used) and FY26 (₹1.94 crore used), and has incurred losses in the past.


Financials

All Values are in Cr.

Issue details

Issue type

Mainboard

Issue size

₹125 crore

Fresh Issue

₹125 crore

OFS

Not Applicable

Price range

₹ 227 - 239

Lot size

62 shares

Issue Objective

  • Net Proceeds are proposed to be used for: (i) capital expenditure for establishing new centres on leased premises and associated technology costs (~₹41.36 crore); (ii) lease payments for existing centres in India (~₹14.45 crore); (iii) investment in subsidiary Mom's Belief US Inc. for lease/licence payments on US centres (~₹10.13 crore); (iv) brand awareness and outreach programs (~₹10.21 crore); and (v) funding inorganic growth through unidentified acquisitions and general corporate purposes (balance amount).


Dates

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Bidding open

1 Sep'26

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Bidding close

3 Sep'26

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Allotment date

4 Sep'26

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Refund date

5 Sep'26

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Listing

8 Sep'26

IPO Reservations

Qualified institutional buyers

75%

Non-institutional investors

15%

Retail individual investors

10%

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Read the Offer Document (PDF)

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