Tonbo Imaging’s Rs 852 Cr IPO offers investor exit

Tonbo Imaging India will launch its Rs 852 crore initial public offering (IPO) on October 15, offering existing shares to promoters and investors at a price band of Rs 665-700 per share. The issue does not involve any fresh shares. Analysts estimate the company's value at approximately Rs 4,010 crore, or around 79 times its FY26 profit after tax.

The IPO aims to provide an exit opportunity for existing shareholders, with the largest sellers being CEAQ Technologies Private Limited and CEAQ Technologies Pte. Ltd., together accounting for about 75.2% of shares offered. Promoters Arvind Kondangi Lakshmikumar, Ankit Kumar, and Cecilia D’Souza will sell smaller portions of their shares.

After the IPO, the promoters' combined stake would decrease to approximately 14.01%, CEAQ India would sell its disclosed holding, and CEAQ Singapore would retain around 18.22%. The Bengaluru-based company specializes in thermal imaging equipment, tactical sights, and integrated defence sensor platforms. Despite the sector's growth driven by demand for indigenous defence technology, Tonbo's financial performance has been affected by large contracts and delivery schedules.

Revenue from operations grew by 9.55% in FY25 but fell by 22.69% in FY26 due to disruptions in international orders and deferred anticipated orders. Profit after tax declined by 30.07% to Rs 50.88 crore in FY26, while EBITDA also dropped by 24.77% to Rs 104.62 crore. The company's export sales fell by 93.42%, accounting for only 5.57% of operating revenue, whereas domestic sales increased by 114.89%.

The company's operating cash flow was negative at Rs 63.22 crore in FY26. Despite India's defence exports growing by 62.66% in FY26, Tonbo faces exposure to delays or changes in a small number of key contracts.