The Tonbo Imaging IPO was fully subscribed within hours of opening on Thursday, as strong grey-market premiums signalled expectations of a blockbuster stock market debut for the Bengaluru-based defence electronics manufacturer.
The Rs 852.18-crore Tonbo Imaging IPO, which opened for public bidding on October 15 and closes on October 19, commanded a grey market premium of about Rs 500 per share on day one — implying a potential listing gain of roughly 71 per cent over the upper end of its Rs 665 to Rs 700 price band and an estimated listing price of around Rs 1,200.
The premium, which climbed steadily from Rs 350 earlier in the week to Rs 505 on October 15, makes Tonbo the strongest grey-market performer among the batch of IPOs hitting Dalal Street this week.
Tonbo Imaging IPO: price band, dates and structure
The Tonbo Imaging IPO comprises entirely an offer for sale of up to 1.22 crore shares by promoters and early investors, which means the company itself will not receive any capital from the listing. JM Financial is the book-running lead manager, while KFin Technologies is serving as registrar.
Strong demand from non-institutional and retail investors pushed overall subscription past the 100 per cent mark on the first day itself, buoyed by upbeat sentiment around India’s indigenous defence manufacturing ecosystem. By the end of the day, the issue was subscribed nearly 3.8 times overall, with the retail portion subscribed over 3 times and the non-institutional segment seeing robust bidding.
Ahead of the opening, the company had mobilised Rs 255.36 crore from 43 institutional anchor investors on October 14, allotting 36.48 lakh shares at the top of the price band. The net public offer reserves 50 per cent for qualified institutional buyers, 15 per cent for non-institutional investors and 35 per cent for retail applicants, with a lot size of 21 shares requiring a minimum investment of Rs 14,700. Tentative timelines indicate share allotment will be finalised on October 21, with listing on the BSE and NSE scheduled for October 23.
Valuation questions over the Tonbo Imaging IPO
Tonbo Imaging designs and manufactures advanced imaging and surveillance systems for defence applications, competing with listed peers such as Paras Defence and Space Technologies, Data Patterns, Astra Microwave, Zen Technologies and Bharat Electronics. At the upper price band, investors in the Tonbo Imaging IPO are paying a price-to-earnings multiple of about 78.8 times — richer than several peers.
The financials show a mixed picture. Revenue stood at Rs 362.65 crore in FY26 with a profit after tax of Rs 50.88 crore, but the June quarter was weak, with revenue of just Rs 36.01 crore and a net loss of Rs 17.74 crore. The company’s P/E of 78.83 times sits between Data Patterns at 87.29 and Astra Microwave at 83.92, but well above Bharat Electronics at 45.70, even as its FY26 revenue is a fraction of its larger peers. Analysts tracking the issue have flagged the expensive valuation and advised investors to await an earnings recovery before taking long-term positions, even as grey-market trends point to strong listing-day demand.
Tonbo Imaging IPO lists into a crowded primary market
The Tonbo Imaging IPO lists into one of the busiest primary-market weeks of the year. Four IPOs opened for subscription on the same day, including Zetwerk Manufacturing Businesses’ Rs 5,012-crore issue and Bonfiglioli Transmissions’ Rs 2,533.66-crore offer, alongside Sahajanand Medical Technologies. Among them, Tonbo commands the highest indicative listing gain based on reported grey-market figures, according to market trackers.
As with all grey-market indicators, the premium is unofficial and can swing sharply before listing — it has already moved from Rs 350 on October 11 to Rs 505 on October 15, a trajectory that has amplified retail excitement while underlining how quickly sentiment-driven pricing can move. Investors are advised to weigh the company’s fundamentals and the stretched valuation against the listing-gain potential before applying, and to watch whether the Tonbo Imaging IPO can hold its premium into the October 23 listing.