Tonbo Imaging IPO Oversubscribed Nearly 7X On Day 2 So Far

Defense technology firm Tonbo Imaging's ₹852.1 Cr IPO witnessed overwhelming investor enthusiasm on its second bidding day. Investors submitted bids for approximately 5.93 Cr shares, surpassing the 85.26 Lakh shares available for sale by a factor of 6.95X. Individual retail investors led the demand, placing bids for 2.70 Cr shares, representing a 6.34X oversubscription.

Non-institutional investors (NIIs) collectively bid for 2.25 Cr shares, outstripping their reserved 18.24 Lakh shares by 12.36X. Within this category, investors vied for 1.18 Cr shares valued over ₹10 Lakh, and 1.08 Cr shares in the ₹2-10 Lakh range. Qualified institutional buyers (QIBs) submitted 95.83 Lakh shares, exceeding their allocation by 3.94X.

Company employees also bid for 1.68 Lakhs shares, surpassing their 14K reserved shares by 12.03X. Prior to the IPO launch, Tonbo allocated 36.5 Lakh shares to 43 anchor investors at ₹700 each, generating ₹255.4 Cr. The IPO, consisting of a potential offering of up to 1.2 Cr shares without a fresh issue element, will conclude on October 19.

With a price band of ₹665-₹700 per share, the company's valuation could reach ₹4,009.8 Cr at the higher end of the range. Originally a subsidiary of research firm Sarnoff Corporation, Tonbo was acquired by promoters and cofounders Arvind Lakshmikumar, Ankit Kumar, and Cecilia D’Souza in 2012. The company has since specialized in designing and developing advanced imaging and sensor systems for military applications, including thermal imaging, weapon sights, fire-control systems, and missile seekers.

Tonbo manages prototype development, system integration, and qualification testing internally, while outsourcing manufacturing to partners like Kaynes Technology and Avalon Technology. Financially, Tonbo reported operating revenue of ₹36 Cr and a net loss of ₹17.7 Cr in Q1 FY27. Revenue from operations declined 22.7% to ₹362.6 Cr in FY26, and net profit dropped 43% YoY to ₹50.8 Cr.