The initial public offering of Rays of Belief Limited closed on September 3 with overall subscription of 107.71 times, as a surge in institutional and non-institutional demand on the final day transformed what had looked like a tepid response into a heavily oversubscribed issue. Total bids received stood at 33,79,77,624 shares against 31,37,810 on offer.
Institutional demand surges on final day
The turnaround came in the qualified institutional buyer segment, which closed at 9.06 times after sitting at near-zero through most of the second day. FIIs bid for 29,00,174 shares while domestic financial institutions accounted for 43,896 shares, with the bulk, 1,36,32,560 shares, coming from the “Others” sub-category. Mutual funds recorded no participation.
NII category leads subscription
Non-institutional investors delivered the strongest subscription at 279.11 times overall. The larger NII category, covering bids above ₹10 lakh, was subscribed 303.82 times, driven overwhelmingly by high-net-worth individuals who bid for over 15.21 crore shares. The smaller NII segment, for bids between ₹2 lakh and ₹10 lakh, closed at 229.70 times.
Retail individual investors subscribed 195.86 times, with over 8.75 crore shares bid at the cut-off price of ₹239.
IPO to raise ₹125 crore
The IPO, priced at ₹227–239 per share, sought to raise ₹125 crore entirely through a fresh issue to fund centre expansion, lease payments, and investment in its US subsidiary.
Religare Broking flags valuation concerns
Religare Broking had assigned a Neutral rating on the issue, flagging a price-to-earnings multiple of approximately 100 times as expensive relative to current earnings. The brokerage noted that while revenue from operations grew strongly to ₹81.66 crore in FY26, profit after tax declined to ₹4.96 crore from ₹5.88 crore the previous year, with return on equity also falling to 21.64 per cent from 56.56 per cent, pointing to weakening capital efficiency despite robust top-line growth.