It is the second day of bidding for Tonbo Imaging India’s Initial Public offering (IPO). The IPO, which was fully subscribed within a few hours of opening, has been subscribed almost 5 times so far. The shares of Tonbo Imaging were commanding a strong premium in the grey market.
The issue, which aims to raise Rs 852.18 crores, is entirely an offer for sale of 1.22 crore shares. The IPO bidding will close on October 19. The company has set the price band in a range of Rs 665 and Rs 700 per equity share.
Tonbo Imaging India IPO: Subscription snapshot as of Day 2
The issue of Tonbo Imaging India was booked fully within a few hours of opening on Day 1. On Day 2, the IPO has been booked to a total of 4.96 times so far. The issue received 4.23 crore bids against 85.26 lakh offered shares as of 11:00 AM on Day 2. The retail segment was booked 4.24 times, and the employee category was subscribed 8.59 times. The Non-Institutional Investors (NIIs) segment was booked 8.01 times, while the Qualified Institutional Buyers (QIBs) subscribed to the issue 3.93 times during the same time frame.
Tonbo Imaging India IPO: GMP
Tonbo Imaging India was fetching a Grey Market Premium (GMP) of Rs 500, which is 71.43 per cent higher to the issue price. This suggests that the listing price for IPO is likely to be around Rs 1,200.
It is important to note that GMP merely reflects market sentiment and is not an official or guaranteed listing price.
Tonbo Imaging India IPO: Allotment and listing
Tonbo Imaging India IPO: Lot size
A retail applicant needs to apply for a minimum of one lot that contains 21 shares. The minimum amount of investment required by an individual investor is Rs 14,700
Tonbo Imaging India IPO: Objectives of the issue
The Tonbo Imaging IPO is a 100% OFS, so the company will not receive any funds, and the entire IPO proceeds will go to the selling shareholders.
Tonbo Imaging India IPO: BRLM and registrar
Tonbo Imaging India IPO: Expert’s take
Tonbo is well positioned in a fast-growing defence-electronics market, with global defence electronics expected to grow at a 14.4% CAGR to $232.1 billion by CY30, and the EO/IR market nearly doubling to $14.4 billion, said Canara Bank Securities in an IPO note.
Its moat lies in 100% in-house IP, ITAR-free exportability, strong export revenue (65.52% in FY25), and 94% share of India’s thermal-imaging export volume. Conservative R&D accounting limits intangible risk and supports earnings quality, though revenue declined from Rs 428.19 crore in FY24 to Rs 362.65 crore in FY26 despite healthy 28.85% margins.
“The key concern is weak cash flow from high receivables and inventory, while the Q1 FY27 loss is largely seasonal given H2-weighted revenue recognition. At 76x FY26 earnings, valuation is in line with peers; we recommend Subscribe for long-term, high-risk investors, monitoring order inflows, working capital, export execution, and margins,” said the brokerage house.
About Tonbo Imaging India
Tonbo Imaging India is a global defence electronics original equipment manufacturer (“OEM”). The company design, develop and manufacture sensing, processing, communication and guidance systems for surveillance, reconnaissance, targeting, and control.
The company have developed a diversified product portfolio including thermal imaging cores, weapon sights, hand-held thermal imag ing binoculars, targeting systems, missile seekers, fire control systems, missile guidance systems amongst others to enable autonomy on the battlefield.