Rays of Belief IPO closes 107 times subscribed as institutional demand surges
Institutional demand strengthened sharply on the final day, helping transform the issue from a tepid response into heavy oversubscription
The initial public offering (IPO) of Rays of Belief Limited concluded on September 3 with an impressive subscription of 107.71 times, as escalating institutional and non-institutional interest transformed an initially sluggish response into a highly oversubscribed deal. The total bids received amounted to 33,79,77,624 shares, surpassing the 31,37,810 shares available for subscription.
This surge in demand was particularly notable in the Qualified Institutional Buyer segment, which reached 9.06 times after languishing near-zero throughout most of the second day. Financial institutions contributed 43,896 shares, while the remaining 1,36,32,560 shares were sourced from the broader "Others" category. Non-Institutional Investors (NIIs) delivered the strongest subscription at 279.11 times overall, with the larger NII category, which includes bids exceeding ₹10 lakh, garnering 303.82 times.
High-net-worth individuals were the primary contributors to this segment, placing over 15.21 crore shares. The smaller NII segment, encompassing bids within the ₹2 lakh to ₹10 lakh range, closed at 229.70 times. Retail individual investors participated in the IPO to a lesser extent, subscribing 195.86 times, with a total of over 8.75 crore shares submitted at the cut-off price of ₹239.
The IPO, priced between ₹227 and ₹239 per share, aimed to raise ₹125 crore through a fresh issuance to fuel the company's expansion, lease payments, and investments in its US subsidiary. Religare Broking assigned a neutral rating to the issue, citing a price-to-earnings multiple of approximately 100 times as being relatively expensive compared to current earnings.
The brokerage highlighted that while revenue from operations grew robustly to ₹81.66 crore in FY26, profit after tax declined to ₹4.96 crore from ₹5.88 crore the previous year, and return on equity also fell to 21.64 percent from 56.56 percent, indicating weakening capital efficiency despite strong top-line growth.
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