A New Delhi-based “for-profit social enterprise” behind the Mom’s Belief brand opens its Rs 125 crore mainboard issue on September 1
A for-profit social enterprise providing intervention plans for children with neurodevelopmental disorders plans to raise Rs 125 crore via a mainboard listing on BSE and NSE.
Rays of Belief Ltd (RBL), operating under the Mom’s Belief brand and incorporated in 2017, opens for subscription on September 1 with the issue closing on September 3.
The company sits in a rare and socially meaningful niche — a “For-Profit Social Enterprise” providing personalised intervention plans for children with Neurodevelopmental Disorders (NDDs).
These conditions include autism spectrum disorder (ASD), attention-deficit/hyperactivity disorder (ADHD), Down Syndrome, cerebral palsy, intellectual disability, learning disabilities and global developmental delays.
The company was founded to tackle key barriers in the behavioural-health domain — lack of awareness, limited access, inadequate quality of care and affordability — and its plans are designed to empower parents and families to act as co-therapists in a child’s developmental journey.
The scale and ranking are the standout credentials. Based on number of centres, as of March 31, 2026, RBL ranks first in India in offering intervention plans for children with NDDs, and seventh globally among listed players in a similar behavioural-health domain (per a CARE report).
It is India’s largest for-profit social enterprise in this space. Starting from its first centre in Gurgaon in 2018, it scaled from 71 centres in FY2023 to 136 centres (excluding three recently acquired in the US) as of March 31, 2026 — spread across 57 cities in 20 states and union territories under the Mom’s Belief brand.
The geographic reach is deliberately broad. With 42 centres in Tier-1, 77 in Tier-2 and 17 in Tier-3 cities, RBL has extended developmental care into underrepresented and semi-urban geographies where access has traditionally been limited — its footprint is predominantly Tier-2, a genuine differentiator.
The company has served upwards of 58,000 children since 2018, and 9,205 children in FY2026 alone. Its services cater mainly to children from 18 months to 12 years, with specialised programs for older children up to 15 focusing on vocational and life skills.
Centres offer a multidisciplinary suite — early intervention, parental guidance, occupational therapy, language therapy and family support — backed by 150+ in-centre teaching tools and home-based learning kits with 2,000+ tools.
The company has recognitions including being named among the most valued mother-and-child brands by the Times of India in 2020 and an Innovative Practice Award from the Zero Project Selection Committee at the UN in Vienna in 2019. In June 2025, RBL acquired Mom’s Belief US, Inc. as a wholly-owned subsidiary (and a step-down subsidiary), adding three centres in Virginia — Salem, Lynchburg and Roanoke — to expand its behavioural-health services in the USA. As of March 31, 2026, it had 521 employees and 19 consultants.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | September 1, 2026 |
| Issue Closes | September 3, 2026 |
| Listing | BSE, NSE (Mainboard) |
| Listing Date | September 8, 2026 |
| Issue Type | Book Built |
| Price Band | Rs 227 – Rs 239 per share |
| Face Value | Rs 10 |
| Issue Size | Rs 125.00 crore (52,30,000 shares, entirely fresh) |
| Min. Application | 62 shares (multiples thereafter) |
| IPO as % of Post-IPO Capital | 25.02% |
| Post-IPO Market Cap | Rs 499.55 crore |
| QIB / NII / Retail | 75% / 15% / 10% |
| Lead Manager | Mefcom Capital Markets Ltd. |
| Registrar | KFin Technologies Ltd. |
The issue is entirely a fresh issue. From the net proceeds, RBL will utilise Rs 41.36 crore for capex on establishing new centres on leased premises and investing in hardware, Rs 14.45 crore for lease payments of existing centres, Rs 10.13 crore for investment in subsidiary Mom’s Belief US Inc., Rs 10.21 crore for brand awareness and inclusive outreach programs, and the rest for general corporate purposes. Ahead of the opening, RBL raised Rs 50 crore from anchor investors, with the anchor bid on August 31.
An important structural note: because the company is being listed under SEBI’s Regulation 6(2) route for companies without the standard profitability track record, the issue reserves a large 75% for QIBs and only 10% for retail — so institutional demand is decisive here.
Two capital-history points stand out. Post-IPO, paid-up equity capital rises from Rs 15.67 crore (1,56,71,682 shares) to Rs 20.90 crore (2,09,01,682 shares). And the pre-IPO history is striking: the company issued further equity in the Rs 1,000–5,402 range between May 2018 and May 2026, and issued bonus shares in a very large 45:1 ratio in June 2025; the offer document is missing the promoters’ average cost of acquisition.
GMP Watch
Grey-market interest has been moderately positive. In tracked data, the Rays of Belief IPO GMP has ranged around ₹38–48 in the run-up to and on opening day, implying a listing gain of roughly 16–20% over the Rs 239 upper band — one tracker pegged it at ₹38 (+15.9%, indicative listing near ₹277), climbing through the day, while another showed ₹48. As always, GMP is unofficial, unregulated and unendorsed — treat it as one data point rather than a listing forecast.
Financial Performance
| Particulars (Rs cr) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Total Income | 30.76 | 73.26* | 82.06 |
| Net Profit (PAT) | 0.85 | 6.58* | 4.96 |
| PAT Margin (%) | 2.79 | 16.15 | 6.07 |
| RoE (%) | 16.83 | 56.56 | 21.64 |
*FY25 shown on a pro-forma consolidated basis; FY24 standalone, FY26 consolidated.
The top-line growth is genuine and rapid — total income rose from Rs 30.76 crore in FY24 to Rs 82.06 crore in FY26, reflecting the aggressive centre roll-out and the US acquisition. But the bottom line has been inconsistent: net profit moved from Rs 0.85 crore (FY24) to Rs 6.58 crore (pro-forma FY25) and then down to Rs 4.96 crore (FY26), with PAT margin swinging from 2.79% to 16.15% to 6.07%.
Management attributes the profit inconsistency partly to deferred-tax adjustments, but the volatility is real, and the company is still at a nascent, scaling stage. Notably, the company reported negative operating cash flow in FY26 — book profits are not yet translating into operating cash.
The valuation is where the issue becomes demanding. The company reported an average EPS of about Rs 2.98 and an average RoNW of 32.48% over three fiscals. On book value, the issue is priced at a P/BV of 15.25 on the March 31, 2026 NAV of Rs 15.67, easing to 3.29x on the post-IPO NAV of Rs 72.67 at the upper cap.
On earnings, the multiples are steep: annualise the FY26 earnings onto the post-IPO fully-diluted capital and the P/E is about 100.84x; on FY25 earnings it is around 85.05x. On recent average performance, the issue looks greedily priced.
According to a note by Swastika Investmart Ltd, the company has a relatively short profitability track record, negative operating cash flow in FY26, and execution risks tied to its aggressive expansion plans, with no directly comparable listed peers making valuation assessment challenging. On that basis, Swastika Investmart Ltd takes a Neutral view.
Risks to Consider
Valuation is the headline risk. At a P/E of ~85–101x and a P/BV of 15.25x on current NAV, with no listed peer to anchor it, the issue is aggressively priced and leaves very little room for execution disappointment.
Short profitability track record and negative cash flow are core concerns. The company has a relatively short profitability history, and it reported negative operating cash flow in FY26 alongside a PAT that fell even as revenue rose — signs that profitability is neither stable nor yet cash-generative in this scaling-stage business.
Execution risk on aggressive expansion is significant — the growth thesis rests on rolling out new leased centres, scaling the US subsidiary, and brand-outreach spending, all of which carry lease-liability, ramp-up and geographic-expansion risks.