Rays of Belief shares list at par with IPO issue price on NSE; here’s what investors should know

Shares of Rays of Belief Ltd, which operates under the Mom's Belief brand, debuted at ₹239 apiece on the National Stock Exchange (NSE) on Tuesday, September 8. This represents an at par listing alongside the IPO's issue price of ₹239 per share.

In line with the NSE listing, the company shares listed on the BSE at a price of ₹239 per share, at par with the issue price marking neither a premium or a discount before the trading session begins for the open market, according to the exchange data.

Shares tumble 5% post-listing

After listing at par with the issue price, NSE data showed that Rays of Belief shares declined around 5% during the morning market hours, to touch an intraday low of ₹227.32 apiece during Tuesday's market, in comparison to the ₹239 per share upper price band of the IPO.

As of 10:51 am (IST), the company shares recovered some of its losses trading around ₹230.85, marking a drop of 3.3% during the trading session on September 8.

On BSE, Rays of Belief shares were trading 3.7% lower at ₹230 during the morning market hours, according to the exchange data.

Rays of Belief IPO allotment: Here's how much investors made per lot

A lot consisted of 62 shares and cost ₹14,818. Investors who received the Rays of Belief IPO allotment made nil listing gains or incurred zero listing discount per lot, keeping the value of their investment at ₹14,818 per lot, as per the listing price on the NSE.

The ₹125 crore initial public offering was a fresh issuance of 52.30 lakh shares, with no offer for the sale component.

The funds raised from the IPO round will be used to fund capital expenditure towards establishing new centres on leased premises; lease payments of existing domestic centres along with investment in Mom’s Belief US Inc., a subsidiary, for making lease/license payments for existing centres in the United States of America.

The company also plans to invest in brand awareness and inclusive outreach programmes and funding inorganic growth through unidentified acquisition. The remaining funds from the public issue will be used for general corporate purposes.

"Our company expects that the listing of the equity shares will result in the enhancement of our visibility and our brand image among our existing and potential customers and creation of a public market for our equity shares," according to the red herring prospectus.

The IPO received 107.71 times subscription, with bids for 33,79,79,918 shares compared to 31,37,810 shares on offer, as per data available with the National Stock Exchange (NSE).

The quota reserved for non-institutional investors (NIIs) was subscribed 279.11 times, while the retail individual investors (RIIs) category received 195.87 times subscription. The portion for qualified institutional buyers (QIBs) was subscribed 9.06 times.

Rays of Belief, a for-profit social enterprise, provides personalised intervention plans for children facing neurodevelopmental disorders (NDDs), including cerebral palsy, autism spectrum disorder, Down syndrome, intellectual disability, learning disabilities, ADHD and global developmental delays.