Rays of Belief Limited IPO: ₹76.15 Cr Issue, DRHP Details & Key Risks
Rays of Belief Limited files DRHP for SME IPO. #1 NDD centre operator in India with 136 centres. Revenue CAGR 63.34% but negative operating cash flows. Proceeds for 319 new centres. High related-party revenue dependency noted.
*this image is generated using AI for illustrative purposes only.
Rays of Belief Limited, operating under the brand Mom's Belief, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO). As India’s leading For-Profit Social Enterprise in the Neurodevelopmental Disorders (NDD) intervention space, the company holds the #1 rank by number of centres. The IPO is structured as a Fresh Issue only, with no Offer for Sale (OFS). Proceeds are earmarked for aggressive expansion, including the establishment of 319 new centres and brand building.
Company Overview
Incorporated in 2017 and commencing operations in 2018, Rays of Belief Limited provides evidence-based intervention plans for children aged 18 months to 12 years with conditions such as Autism Spectrum Disorder (ASD), ADHD, Down Syndrome, and Cerebral Palsy.
As of March 31, 2026, the company operates 136 centres across 57 cities in 20 states and union territories. Its presence spans Tier 1 (42 centres), Tier 2 (77 centres), and Tier 3 (17 cities) geographies. Additionally, the company has an international footprint with 3 centres in Virginia, USA, through subsidiaries Mom's Belief US, Inc. and Allergy & Immunology Virginia, LLC.
The leadership team includes Managing Director Nitin Bindlish, honored as Social Entrepreneur of the Year 2023, alongside a diverse board comprising clinical and financial experts.
Offer Details
The IPO is scheduled to open on 01-Sep-2026 and close on 03-Sep-2026. Specific details regarding the price band, face value, lot size, and listing exchange are not yet available in the DRHP data provided.
| Parameter | Details |
|---|---|
| Issue Type | Fresh Issue |
| Offer for Sale (OFS) | Nil |
| Issue Open Date | 01-Sep-2026 |
| Issue Close Date | 03-Sep-2026 |
| Listing Date | Not Available |
| Price Band | Not Available |
Objects of the Issue
The total quantified proceeds amount to ₹76.15 Crore. The primary use of funds includes:
- New Centre Establishment: ₹41.36 Crore for capital expenditure towards 319 new centres (CLCs, partnerships, school collaborations) and technology hardware.
- Lease Payments (India): ₹14.45 Crore for lease payments for existing centres in India over the next 3 fiscal years.
- US Subsidiary Leases: ₹10.13 Crore for lease/license payments for 3 existing US centres in Virginia.
- Brand Awareness: ₹10.21 Crore for digital marketing, awareness webinars, and community programs.
- Acquisitions & Corporate Purposes: Residual proceeds for unidentified acquisitions and general corporate purposes.
Financial Highlights
The company reported a Revenue CAGR of 63.34% from FY2024 to FY2026. Note that FY2026 figures are Consolidated (including US subsidiaries), while FY2024 and FY2025 are Standalone.
| Fiscal Year | Revenue from Ops (₹ Cr) | PAT (₹ Cr) | PAT Margin (%) | Total Equity (₹ Cr) |
|---|---|---|---|---|
| FY2024 (Standalone) | 30.61 | 0.85 | 2.78% | 5.78 |
| FY2025 (Standalone) | 36.42 | 5.88 | 16.13% | 15.02 |
| FY2026 (Consolidated) | 81.66 | 4.96 | 6.07% | 30.81 |
EBITDA grew from ₹1.491 Crore in FY2024 to ₹11.911 Crore in FY2026. However, the company reported negative cash flows from operations in both FY2025 (₹-1.81 Cr) and FY2026 (₹-1.94 Cr).
Risk Factors
Investors should consider the following material risks disclosed in the DRHP:
- Leased Premises Dependency: All 136 centres operate on leased premises with tenures of 11 months to 3 years. 30–37% of capex is immovable and non-recoverable if leases are not renewed.
- Negative Cash Flows: Operating cash flows were negative in FY2025 (₹-1.81 Cr) and FY2026 (₹-1.94 Cr). New centres require 8–12 months to achieve breakeven.
- Related Party Revenue Dependency: 25.56% of FY2026 Revenue from Operations was derived from export services to related parties (Carving Futures Pte. Ltd. and Carving Futures Inc.).
- Trade Receivables: Trade receivables stood at ₹18.088 Crore (22.15% of revenue) as of March 31, 2026, with trade receivable days at 81 days.
- Execution Risk: The plan to establish 319 new centres has no identified locations or definitive agreements as of the DRHP filing.
Valuation & Peer Comparison
Specific valuation multiples (P/E, P/B) cannot be calculated as the price band and post-issue share capital are not disclosed. The company claims to be #1 in India and #7 globally among listed players in the behavioral health domain. Peer comparison data is not available in the provided DRHP excerpt.
Bottom Line
Rays of Belief Limited presents a high-growth profile with strong market leadership in the NDD intervention sector. However, the investment case is tempered by negative operating cash flows, significant reliance on related-party revenues, and execution risks associated with a large-scale expansion plan without identified sites. Investors should monitor the price band announcement and subsequent subscription trends closely.
How will the company mitigate the risk of negative operating cash flows while funding the aggressive establishment of 319 new centres, given that new locations typically take 8–12 months to break even?
What specific strategies will Rays of Belief employ to reduce its 25.56% revenue dependency on related-party export services as it expands its domestic footprint?
Given that all current centres operate on short-term leases (11 months to 3 years), how does the company plan to secure long-term occupancy for its expansion sites to protect the ₹41.36 Crore capital expenditure?
19
Access Market Heat-map & Insights 
Create, Save & Share your Screener 
Use 200+ Screening Filters 
