Tonbo Imaging India shares made a bumper stock market debut on Friday, October 23, listing at ₹1,162 on the BSE, a premium of 66% over the IPO price of ₹700. On the NSE, the stock opened at ₹1,160, marking a premium of 65.71%.
According to InvestorGain, Tonbo Imaging shares were commanding a grey market premium of nearly 64% on the morning of October 23, indicating positive sentiment among investors ahead of the listing.
However, the grey market premium is an unofficial indicator of investor sentiment and does not guarantee listing gains. The actual listing price may differ from these estimates.
The defence technology company’s initial public offering (IPO) witnessed strong investor demand during the bidding period. The ₹852.18-crore issue, which closed for subscription on October 19, was subscribed 135.9 times.
Investors bid for 1,15,86,91,464 shares against 85,26,033 shares on offer. Demand was strong across all investor categories, with the Qualified Institutional Buyers (QIBs) portion subscribed 293.56 times, the Non-Institutional Investors (NIIs) category subscribed 170.94 times and the Retail Individual Investors (RIIs) portion subscribed 31.06 times.
Tonbo Imaging’s IPO was priced in a band of ₹665-700 per share, with a face value of ₹2 per share. At the upper end of the price band, the company is valued at a post-issue market capitalisation of around ₹4,010 crore.
The public issue comprised an offer for sale (OFS) of 1,21,74,046 equity shares, with no fresh issue component. As a result, Tonbo Imaging India will not receive any proceeds from the IPO. Instead, the proceeds, after applicable expenses, will go to the existing shareholders selling their stakes.
Tonbo Imaging India is a defence electronics company specialising in advanced electro-optical and infrared imaging technologies, along with electronic systems for defence and security applications. Its product portfolio spans tactical systems, platform systems and directed energy systems.
The company follows an asset-light business model, retaining core research and development (R&D), product design and intellectual property development in-house while outsourcing manufacturing to contract manufacturers, including Kaynes Technology and Avalon Technologies. R&D accounted for 8.2% of the company’s total expenses in FY26.
Key risks highlighted for the company include its dependence on government procurement cycles, customer concentration and reliance on key suppliers. Its top 10 customers accounted for 77.8% of revenue in FY26. The company also faces risks arising from the limited availability of global suppliers for critical components and its dependence on exports and overseas markets.