IPO Alert: Mom’s Belief Parent Rays of Belief Files UDRHP to Raise Funds for Expansion

Rays of Belief, which runs the child development and therapy network Mom’s Belief, has filed an updated draft red herring prospectus (UDRHP) with the Securities and Exchange Board of India (SEBI) on February 11, 2026.  

The proposed Initial Public Offering (IPO) will be a fresh issue of 60 lakh equity shares. There is no offer-for-sale portion in the issue.  

This means the funds raised, after deducting issue-related expenses, will be used by the company. Rays of Belief had earlier submitted its IPO papers through the confidential route in August 2025.  

The filing was cleared by the regulator on 31 December 2025. Mefcom Capital Markets is the merchant banker for the issue. 

Proposed Use of Proceeds 

As per the filing, about ₹57.6 crore will be used to set up new centres on leased premises, along with related technology and hardware. Another ₹14.4 crore is for lease payments at existing centres across India. 

The company also plans to invest ₹10.1 crore in its subsidiary, Mom’s Belief US Inc., to cover lease or licence payments for centres in the United States.  

Around ₹10.2 crore has been set aside for brand awareness and outreach activities. The balance amount will be used for acquisitions and general corporate purposes. 

Operations and Scale 

Incorporated in 2017, Rays of Belief provides intervention services for children with neurodevelopmental disorders. Its services include early intervention, occupational therapy, language therapy, parental guidance, and family support programmes. 

The company operates 136 centres across 20 states and union territories. Based on the number of centres, it describes itself as the largest for-profit social enterprise in this segment in India.  

It also states that it is among a limited number of global providers offering structured intervention plans at this scale. 

Shareholding and Financials 

Promoter entity Carving Futures holds a 92.63% stake in the company, while the remaining 7.07% is owned by public investors, including KAPICO Investment and Rainmatter Investments. Founder Nitin Bindlish holds a 48.69% stake in Carving Futures. 

For the 6 months ended September 2025, the company reported revenue of ₹43.1 crore and net profit of ₹1.3 crore. In the financial year ended March 2025, profit rose to ₹5.8 crore from ₹0.8 crore a year earlier, while revenue increased to ₹36.4 crore from ₹30.6 crore. 

Read More: Upcoming IPO: SEBI Allowed 8 Companies Including Elevate Campuses, InCred Holdings to Float IPO! 

Conclusion 

The company is among the first in this segment to seek a stock market listing and currently has no listed peers. The proposed issue is intended to support expansion and meet ongoing operational requirements. 

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