Rays of Belief Ltd

Rays of Belief runs India's largest network of therapy centres for children with autism, ADHD and other developmental disorders, addressing a real and underserved need. FY26 growth of 124% was one-off and came from acquiring three clinics in the US, which were the reason for the revenue jump and contributed 66% of overall profit. More than 25% of revenue is derived from billing to promoter-owned companies which have ₹11.3 cr of receivables outstanding, with governance disclosures leaving questions. The core business shows mature centres earning less each year and flat enrolments. Also, the model remains unproven in India where smaller competitors run operating losses. At an IPO ask valuation of 101x P/E and 31x EV/EBITDA, this does not give much comfort as a business.

At the current GMP of ~27% (3 September 2026), the issue points to modest listing gains, if it sustains. However, it is important to note that GMP has been a poor guide of late and has been unstable. For example in recent IPOs: Skyways Air Services had a 30% GMP and listed 10% below its issue price, Symbiotec Pharmalab carried 27% and listed flat, and Annu Projects carried 8% and listed 24% below issue.
