Tonbo Imaging IPO: Price Band ₹665 to ₹700, ₹852 Crore Offer for Sale, Dates, GMP and What to Check Before You Apply
By the FinanceChecks.com Editorial Team | Published October 12, 2026 | Last reviewed October 12, 2026 | 9-minute read
The headline number on this IPO is the grey market premium, which one tracking site put at ₹270 on Monday morning, a gain of nearly 39% over the upper price band. The more important number is a different one: the company will not receive a single rupee from the issue. Every share on offer is being sold by existing shareholders, and Tonbo Imaging’s revenue and profit both fell in FY26. Those two facts do not make the IPO a bad idea, but they are the context any applicant should have in front of them while the premium grabs the attention.
Tonbo Imaging India, a Bengaluru defence electronics maker, has set a price band of ₹665 to ₹700 per share for its ₹852 crore IPO, which opens on October 15. This guide covers the dates, lot size, who is selling, what the financials show, the valuation, and the risks that deserve a second look.
Quick Answer
Tonbo Imaging India’s IPO is a book-built issue of about ₹852 crore at the upper band, and it is a 100% offer for sale of 1.22 crore shares, with no fresh issue, so the company receives no proceeds. It opens on October 15 and closes on October 19, with allotment expected on October 21 and listing on the BSE and NSE on October 23. The lot size is 21 shares, so the minimum retail bid is ₹14,700 at ₹700. The issue values the company at about ₹4,010 crore, or roughly 79 times its FY26 restated profit of ₹50.88 crore. Revenue fell about 23% to ₹362.65 crore in FY26 and profit fell about 30%, while the top 10 customers still accounted for about 78% of revenue. The grey market premium is unofficial and moves quickly, so it should not be the reason you apply.
About This Guide
This guide was compiled by the FinanceChecks.com editorial team using the price band announcement and red herring prospectus details reported by Inc42, Upstox, HDFC Sky and Whalesbook, along with IPO tracking sites for the financial summary, customer concentration and application details. Figures from tracking sites reproduce the offer document and sometimes differ slightly, so please confirm them in the official red herring prospectus on the BSE, NSE or SEBI websites. This is for information and is not a recommendation to subscribe or avoid.
The IPO at a Glance
| Detail | Information |
|---|---|
| Company | Tonbo Imaging India Ltd (Bengaluru) |
| Price band | ₹665 to ₹700 per share |
| Issue size | About ₹852 crore at the upper band |
| Structure | 100% offer for sale of about 1.22 crore shares; no fresh issue |
| Face value | ₹2 per share |
| Post-issue valuation | About ₹4,010 crore at the upper band |
| Lot size | 21 shares |
| Minimum retail investment | ₹14,700 at the upper band |
| Investor quota | QIB 50%, non-institutional 15%, retail 35% |
| Lead managers | JM Financial and IIFL Capital Services |
| Registrar | KFin Technologies |
Key Dates
| Event | Date |
|---|---|
| IPO opens | October 15, 2026 |
| IPO closes | October 19, 2026 |
| Basis of allotment (expected) | October 21, 2026 |
| Refunds and credit of shares (expected) | October 22, 2026 |
| Listing (tentative) | October 23, 2026 |
What Tonbo Imaging Does
Tonbo designs electro-optic and infrared systems for defence and security customers: thermal imaging, surveillance, reconnaissance, targeting and related sensing and processing equipment. It was founded in 2003 by technologists who had worked with US defence organisations, and it moved its focus to defence products in 2012. The three promoters are Arvind Kondangi Lakshmikumar, who is the managing director and CEO, Ankit Kumar and Cecilia D’Souza.
The company follows an asset-light model, which means it designs the systems and outsources much of the large-scale manufacturing to contract partners. It reports customers that include defence forces in India and overseas, law enforcement and homeland security agencies and other defence equipment makers.
An IPO Where the Company Gets Nothing
An offer for sale is a sale of existing shares by current holders, so the proceeds go to them, after expenses and taxes, and not to the business. Here the sellers include the three promoters, a promoter group entity, Vinimaya Advisory LLP, and investors such as CEAQ Technologies and Artiman Partners. The offer was also cut from 1.81 crore shares in the draft papers to about 1.22 crore shares in the final version.
This is common in IPOs by established companies, and a founder or early investor selling part of a stake is not a negative signal by itself. It does change what you are buying. You are not funding expansion, debt repayment or new capacity, because none of that is in the offer. The company will keep funding growth from its own cash and profits, and you are buying a share of the business as it stands, from people who are choosing to sell.
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The Numbers Behind the IPO
| Year | Revenue from operations | Profit after tax |
|---|---|---|
| FY24 | ₹428.19 crore | ₹68.54 crore |
| FY25 | ₹469.08 crore | ₹72.76 crore |
| FY26 | ₹362.65 crore | ₹50.88 crore |
Revenue fell about 22.7% in FY26 and profit fell about 30%. Reported margins are high for a hardware company, with a gross margin of about 51%, an operating (EBITDA) margin of about 29% and a profit margin of about 14%, but returns on capital are modest, with return on equity at about 9.8% and return on capital employed at about 14.5%.
The geography of the revenue shifted sharply. Domestic sales reached ₹337.47 crore in FY26, which was about 93% of revenue, up from about ₹175 crore in FY24, while the DRHP had shown about 65% of FY25 revenue coming from overseas. In other words, exports dropped away and domestic orders replaced them, which is consistent with the push for domestic defence procurement but also shows how lumpy this business can be.
The confirmed order book was about ₹279 crore at the end of FY26, up from about ₹219 crore a year earlier. The company itself cautions that tender-driven defence orders can be delayed, modified or cancelled.
Customer Concentration
Defence electronics depends on a small number of large buyers. The top 10 customers accounted for about 77.8% of revenue in FY26, an improvement from about 95.5% in FY25, but still very high. There are also no recurring subscription-style contracts, so a lost tender or a delayed procurement programme can move revenue sharply, as FY26 showed.
Valuation and the Grey Market
At the upper band the company is valued at about ₹4,010 crore, which works out to about 79 times FY26 restated profit. Tracking sites that use slightly different earnings figures show a similar range, in the high 70s. That is a rich multiple for a company whose profit just declined, so the price is leaning heavily on expected recovery and the growth of India’s defence procurement.
Tracking sites reported a grey market premium of about ₹270 on October 12, which would imply a listing price around ₹970. The grey market is unofficial and unregulated, and these figures change from hour to hour and differ by source. They reflect sentiment, not a forecast of your return, and premiums have a history of shrinking or disappearing before listing.
Strengths and Risks in One Place
| Strengths | Risks |
|---|---|
| Proprietary defence imaging technology and long-experienced promoters | Revenue fell about 23% and profit about 30% in FY26 |
| High reported margins, with gross margin around 51% | The company receives no money from the IPO |
| Asset-light model with outsourced manufacturing | Top 10 customers made up about 78% of FY26 revenue |
| Order book of about ₹279 crore, up from the prior year | Tender-driven orders can be delayed or cancelled |
| Domestic revenue up strongly as indigenisation policy builds demand | Recent weak operating cash flow and rising working capital needs |
| Retail investors get 35% of the issue | Reliance on contract manufacturers and some imported inputs |
How Much You Can Bid
Using the 21-share lot and the standard SEBI application limits, a retail investor can bid for one lot at ₹14,700, up to a maximum of ₹2 lakh, which is 13 lots, or 273 shares, costing about ₹1,91,100 at the upper band. Applications above ₹2 lakh fall in the non-institutional category, starting at 14 lots, and the larger non-institutional category begins at about 69 lots, just above ₹10 lakh. Retail investors apply through their broker or bank using UPI, and the money is blocked until allotment. Confirm the exact limits in the prospectus.
Same Week as Zetwerk
Tonbo’s IPO opens and closes on the same dates as Zetwerk’s ₹5,012 crore IPO, so investors who want to apply to both need to keep enough in their accounts for both UPI blocks until allotment and refunds. The two are very different: Zetwerk is a loss-making, high-revenue manufacturing platform that raises fresh capital, while Tonbo is a profitable but shrinking defence electronics maker whose issue is entirely a sale by shareholders.
Common Mistakes Investors Make With IPOs Like This
The most common mistake is treating the grey market premium as a promise, then applying for the headline gain instead of the business. Another is overlooking that an offer-for-sale-only IPO brings no money to the company, which changes what the issue is for. People also look at high margins and miss that revenue and profit just fell, or that a handful of customers drive most of the sales. Many applicants bid at the upper band without checking the valuation against earnings, and some apply without reading the risk factors, where the concerns about orders, concentration and cash flow are set out in detail.
My Take
This is an IPO where the story and the numbers pull in different directions. The story is strong: India is trying to build domestic defence technology, and Tonbo has genuine imaging capability and long-serving founders. The numbers are more mixed: revenue and profit fell in FY26, concentration is high, and the price asks for around 79 times earnings with no new money going into the company.
That does not mean the IPO will not do well, since defence names have drawn strong interest and the grey market is bullish. It means the decision depends on how much you believe in the recovery of orders and are comfortable paying for it in advance. If you apply, size the bid to an amount you can afford to see fall, read the risk factors yourself, and do not let a grey market number make the decision for you. At least one independent review has taken a cautious stance on the issue, while others focus on the technology and the market opportunity, and both views are reasonable.
Frequently Asked Questions
1. What is the Tonbo Imaging IPO price band? ₹665 to ₹700 per share.
2. When does the Tonbo Imaging IPO open and close? It opens on October 15, 2026 and closes on October 19, 2026.
3. Is the Tonbo Imaging IPO a fresh issue? No. It is a 100% offer for sale of about 1.22 crore shares, so the company receives no proceeds.
4. What is the lot size and minimum investment? The lot size is 21 shares, so the minimum retail investment is ₹14,700 at the upper band of ₹700.
5. When is allotment and listing? Allotment is expected on October 21, refunds and share credit on October 22, and listing is tentatively set for October 23 on the BSE and NSE.
6. Who is selling shares? The three promoters, Arvind Kondangi Lakshmikumar, Ankit Kumar and Cecilia D’Souza, a promoter group entity, Vinimaya Advisory LLP, and investors including CEAQ Technologies and Artiman Partners.
7. How did Tonbo Imaging perform in FY26? Revenue from operations fell about 22.7% to ₹362.65 crore, and restated profit fell about 30% to ₹50.88 crore.
8. What is the valuation? About ₹4,010 crore at the upper band, which is roughly 79 times FY26 restated profit.
9. What is the Tonbo Imaging IPO grey market premium? One tracking site reported about ₹270 on October 12. The grey market is unofficial, and the figure changes quickly and is not a guarantee of listing gains.
10. Should I apply for the Tonbo Imaging IPO? This article does not recommend either way. Read the red herring prospectus, check the risk factors and valuation, apply only with money you can afford to risk, and consider speaking to a SEBI registered adviser.
How We Verified This Information
This guide was researched using reports from Inc42, Upstox, HDFC Sky and Whalesbook on the price band and offer structure, plus IPO tracking sites and Business Standard coverage of the draft prospectus for the financial summary, customer concentration and sellers. Some sources differ on small figures, such as earnings per share and the price-to-earnings multiple, so we gave approximations and recommend checking the official prospectus.
Disclaimer
This article is for general informational purposes only and does not constitute investment advice or a recommendation to subscribe to, buy, sell or hold any security. IPOs carry risk, including the loss of the entire amount invested, and listing prices can fall below the issue price. Figures are drawn from public reports and IPO tracking sites and may differ from the official prospectus. Readers should read the red herring prospectus and consult a SEBI registered investment adviser before investing. FinanceChecks.com is not a SEBI registered investment adviser and is not affiliated with Tonbo Imaging or any bank or investor mentioned.
Last reviewed and fact-checked on October 12, 2026 by the FinanceChecks.com Editorial Team.
Shuchi founded Finance Checks after spending 16+ years working in corporate, managing operations and distribution. She managed her own finances, learned and read regularly and helped people make sense of their savings, loans, insurance, and investments.
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