Rays of Belief, the operator of Mom's Belief, is launching a ₹125 crore IPO on September 1, 2026, to expand its neurodevelopmental care centers. Investors should note that while the company is scaling, it faces risks related to heavy reliance on US revenue and short-term property leases.
Rays of Belief Limited, which operates the neurodevelopmental care brand Mom's Belief, is set to launch its initial public offering on September 1, 2026. The company plans to raise up to ₹125 crore through a fresh issue of 52.3 lakh shares. The price band for the issue has been fixed at ₹227 to ₹239 per share, and the IPO will remain open until September 3, 2026, with a tentative listing date of September 8, 2026.
Founded in 2018, Mom's Belief provides therapy and intervention plans for children with conditions such as Autism Spectrum Disorder, ADHD, and Cerebral Palsy. The company currently operates 136 centers across 20 Indian states and union territories. With this IPO, the firm aims to channel the funds into a significant expansion of its network, targeting the opening of over 300 new centers across Tier 1, Tier 2, and Tier 3 cities between fiscal years 2027 and 2029.
While the company focuses on social enterprise, potential investors should review several business and operational risks noted in its filings. A significant portion of the company's financial performance is tied to international markets. Specifically, approximately 50.21 percent of its fiscal 2025 revenue was generated from operations in the United States. This indicates a high level of reliance on foreign markets, which makes the company sensitive to regulatory, economic, and operational shifts abroad.
Another point for investors to consider is the company’s infrastructure model. The centers operate largely out of leased premises, with lease agreements typically ranging from 11 months to three years. Because the company spends significant capital on fitting out these centers, the inability to renew these leases or a sudden increase in rent costs could impact future profitability. Furthermore, the company has flagged a geographic concentration risk, as a substantial part of its domestic revenue comes from specific regions, including Uttar Pradesh, Karnataka, and Delhi.
Corporate governance is another area to monitor. Filings indicate the company has engaged in significant related-party transactions, particularly regarding the export of support services to its holding or promoter-linked entities. While such arrangements are common in some business structures, they require careful scrutiny to understand how they affect the company’s independent financial health.
The final performance of the stock post-listing will depend on the company's ability to successfully execute its planned expansion while managing these dependencies on foreign revenue and short-term lease renewals. Investors may monitor the company’s post-IPO updates regarding the utilization of funds and whether it can maintain its growth momentum in both the Indian and US markets.