Rays of Belief IPO: Analysts see growth potential but flag execution risks

Rays of Belief IPO review: Rays of Belief IPO opened for subscription today (Tuesday, September 1). The three-day issue will remain open until September 3.

 

The issue is entirely a fresh issue of 52.30 lakh shares of ₹125 crore. Rays of Belief IPO is set issue price band at ₹227 to ₹239 per share. The lot size for an application is 62 shares.

 

Mefcom Capital Markets Ltd. is the book-running lead manager and Kfin Technologies Ltd. is the registrar of the issue.

 

Rays of Belief Ltd. is a for-profit social enterprise focused on supporting children with neurodevelopmental disorders. The company provides personalised intervention plans for conditions including autism, ADHD, Down Syndrome, cerebral palsy, intellectual disabilities and developmental delays.

Rays of Belief IPO GMP 

 

Meanwhile, Rays of Belief's unlisted shares are commanding a decent premium in the grey market. At the last check, Skyways Air Services shares traded at ₹287, reflecting a grey market premium or GMP of ₹48 or 20.08 per cent apiece.

 

Rays of Belief IPO review 

 

Analysts have shared a partially bullish view on the public offer, with Swastika offering a ‘Neutral’ rating, Capital Mind called it a potential long-term investment opportunity.

 

Master Capital Services

 

Master Capital noted that India's Neurodevelopmental Disorders market stood at ₹52,623 million in CY25, with Autism Spectrum Disorder (ASD), Attention-Deficit/Hyperactivity Disorder (ADHD) and cerebral palsy accounting for around 73 per cent. Rising awareness, improved ASD diagnosis and healthcare access are driving demand for specialised therapies. 

 

The brokerage added that Rays of Belief is well positioned to benefit from the growing demand for NDD intervention and therapy services, supported by its 136-centre network across 57 cities and 20 states and union territories, over 340 clinical professionals, multidisciplinary service offerings and experience of serving over 58,000 children since inception. 

 

“Its expansion into the United States through three additional centres further strengthens its growth opportunity in the behavioural health market. Investors may consider the IPO as a potential long-term investment opportunity,” Master Capital noted.

 

Swastika

 

Brokerage firm Swastika noted that there are no listed companies in India or other foreign jurisdictions whose business portfolio is comparable with that of Rays of Belief’s business and comparable to their scale of operations. Hence, it is not possible to provide an industry comparison in relation to the Company.

 

However, the brokerage noted that the company offers personalised NDD intervention services through a growing centre network. Expansion across India and the US provides scope for further revenue growth, and operating margins have improved with increasing scale.

 

Swastika gave a ‘Neutral’ view to the stock, highlighting that “growth prospects remain encouraging, but profitability, cash-flow and execution risks warrant a cautious stance.” Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers discretion is advised.