Rays of Belief Limited
PROSPECTUS · filed 30 Sept 2026
Rays of Belief Limited is a company that operates on leased premises for its learning centres, with immovable capital expenditure constituting approximately 30-37% of total capex. The IPO consists of a fresh issue of 124.997 crore, with no offer for sale component. The company's financial trajectory is vulnerable to factors in Uttar Pradesh, Karnataka, and Delhi, which contributed 15.36% of revenue from operations in Fiscal 2026, and to Tier 2 cities, which contributed 17.58%. A significant risk is that immovable fit-out capital expenditure may not be recoverable if a lease is not renewed, terminated, or if a centre is closed or moved.
What stands out
Risk factor. A significant portion of capital expenditure is immovable fit-outs on leased premises, which may not be recoverable if a lease is not renewed, terminated, or if a centre is closed or moved.
Risk factor. If a lease is not renewed or a centre is closed, the Company may be unable to recover immovable capex, which constitutes approximately 30–37% of total capex for Company Learning Centres.
Primarily fresh capital. 100% of the offer is fresh issue, so most proceeds fund the company.
How the offer is structured
Fresh issue
₹125 Cr
New capital into the company
OFS share
0%
- Funding capital expenditure towards establishment of new centres on leased premises (tenure of 11 months - 3 years) and associated technology (hardware) costs₹41.4 Cr
- Expenditure for lease payments for our existing centres in India₹14.4 Cr
- Investment in our Subsidiary, Mom’s Belief US Inc., for making lease / license payments for our existing centres in the USA₹10.1 Cr
- Expenditure for brand awareness and inclusive outreach programs₹10.2 Cr
- Funding inorganic growth through unidentified acquisition and General corporate purposes₹38.5 Cr
Promoters, litigation & related parties
Promoter (pre)
91.7%
Proceedings
2
The Company has filed a contempt petition against a Defendant for obstructing the Local Commissioner. Additionally, the Company has filed a civil suit against Dr. Manish Samnani seeking permanent injunction and damages amounting to ₹ 2.00 million, with an additional compensation of ₹ 2.49 million included.
Risks the company discloses
A significant portion of capital expenditure is immovable fit-outs on leased premises, which may not be recoverable if a lease is not renewed, terminated, or if a centre is closed or moved.(Operational)
15.36% of Revenue from Operations is derived from centres located in Uttar Pradesh, Karnataka, and Delhi, and 17.58% is derived from Tier 2 cities, making the business vulnerable to factors in these regions.(Operational)
The Company operates on leased premises with lease tenures ranging from 11 months to 3 years, requiring renewal on commercially reasonable terms to avoid vacating centres.(Operational)
If a lease is not renewed or a centre is closed, the Company may be unable to recover immovable capex, which constitutes approximately 30–37% of total capex for Company Learning Centres.(Financial)
Any loss of business from Uttar Pradesh, Karnataka, or Delhi could adversely affect revenues and profitability, as these regions contributed 15.36% of Revenue from Operations in Fiscal 2026.(Operational)
Any loss of business from Tier 2 cities could adversely affect revenues and profitability, as these cities contributed 17.58% of Revenue from Operations in Fiscal 2026.(Operational)
The Company may be required to incur additional capital expenditure to relocate a centre or establish a new one in place of a closed facility, impacting cash flows.(Financial)
Factors relating to political and geographical changes, growing competition, economic downturn, natural disasters, or changes in demand in Uttar Pradesh, Karnataka, Delhi, or Tier 2 cities may adversely affect the business.(Market)
No dimension score is published for this filing. Too few sections could be read from the document to score it without guessing, and a score built on two fields would say more about our extraction than about the company.