Rays of Belief IPO sees retail frenzy; QIB cold shoulder on day 2
QIB segment remains nearly empty at just 0.01 times subscription with one day of bidding remaining
On the second day of subscription for Rays of Belief Limited's IPO, retail investors demonstrated overwhelming interest, bidding for three and a half times the available shares. The majority of these retail bids were completed at the cut-off price of ₹239. Institutional investors, however, showed little enthusiasm, with qualified institutional buyers (QIB) registering a mere 0.01 times subscription, leaving 18,30,310 shares unclaimed.
The IPO, priced between ₹227 and ₹239 per share, aims to raise ₹125 crore, with the funds planned for center network expansion, lease payments, and investment in its US subsidiary. Analysts have given the stock a neutral rating, citing a high price-to-earnings multiple of about 100 times, which they deem overly expensive given its current earnings.
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