Mom’s Belief operator Rays of Belief IPO was fully subscribed on its first day of bidding. The children’s therapy care provider firm’s issue was subscribed at 1.18x, as the company aims to raise Rs 125 crore via the fresh issuance of 52.30 lakh shares of Rs 10 each.
Ahead of its opening, the company had raised Rs 50 crore via the anchor bidding round through five group entities. The company had fixed its issue price band at Rs 227 to Rs 239.
Rays of Belief IPO: Retail segment leads the demand
On its first day of bidding, the company received bids for 36.99 lakh shares against its ask of 31.37 lakh shares. Of this, the strongest demand was seen in the retail investors segment, which was subscribed 6.49x.
However, the non-institutional investors (NII) category was undersubscribed at 0.39x, and the qualified institutional buyers (QIBs) received minimal bids on the first day, amounting to a subscription of 0 times.
Rays of Belief IPO: Day 1 subscription snapshot
So far the IPO has received bids worth Rs 88.74 crore attracting a total of 48,949 applications.
| Investor Category | Subscription (Day 1) |
| Qualified Institutional Buyers (QIBs) | 0.0x |
| Non-Institutional Investors (NIIs) | 0.39x |
| Retail Individual Investors (RIIs) | 6.49x |
| Overall | 1.18x |
Rays of Belief IPO: GMP at 16%
In the unlisted markets, the shares of rays of belief are trading at a grey market premium of 15.90%, suggesting an estimated listing price of Rs 277, based on the upper end of the price band.
This reflects gains of Rs 38 per share and a profit Rs 2,356 per lot. However, readers must know that GMP is unregulated and highly vulnerable to price manipulation. It does not guarantee profits.
Rays of Belief IPO: Subscription timeline
The Rays of Belief IPO opened for subscription on September 1, and will close its bidding window on September 3. Its share allotment process is expected to get completed by September 4, and investors are likely to receive their shares alongside the requisite refunds by September 7.
The company is expected to list on NSE and BSE on September 8.
The IPO is being handled by Mefcom Capital Markers, while Kfin Technologies is the registrar to the issue.
Rays of Belief IPO: Brokerage commentary
Giving the IPO a Neutral rating, Religare Broking said in a report, “ The Company’s high P/E of 100x indicates an expensive valuation and suggests the stock is overvalued relative to its current earnings. Additionally, declining PAT and PAT margins indicate pressure on profitability, while the reduction in RoE reflects weakening capital efficiency. Considering the strong growth prospects but elevated valuation and profitability concerns.”