Tonbo Imaging IPO Oversubscribed 40X On Day 3 Till Now

Defense technology firm Tonbo Imaging has seen its Initial Public Offering (IPO) become oversubscribed by an astonishing 40.82 times on the third day of the bidding period, according to data from the Bombay Stock Exchange (BSE). As of 13:23 IST, investors had submitted bids for 34.80 crore shares, well above the 85.26 lakh shares being offered.

National Investors (NIIs) led the demand, placing bids for 18.56 crore shares out of the 18.24 lakh shares set aside for them, resulting in a subscription rate of 101.78 times the available shares. Within the NII bracket, shares reserved for investors bidding over ₹10 lakh were subscribed to 106.03 times the available shares, with bids of 12.89 crore against 12.16 lakh shares.

Retail investors, meanwhile, had placed bids for 8.79 crore shares against the 42.56 lakh shares allocated to them, achieving a subscription rate of 20.67 times. Qualified Institutional Buyers (QIBs) also showed strong interest, placing bids for 7.38 crore shares against the 24.32 lakh shares reserved for them, yielding an oversubscription rate of 30.37 times.

Foreign Institutional Investors (FIIs) accounted for the majority of this demand, bidding for 5.12 crore shares. Mutual funds, on the other hand, submitted only 2,478 bids. The portion reserved for employees was also highly subscribed, with 5.40 lakh bids received against 14,000 shares. This surge in interest marks a significant increase from the end of the second day, when the IPO was subscribed to at a rate of 7.78 times.

The ₹852.1 crore IPO consists solely of an offer for sale (OFS) of up to 1.2 crore shares, without any component of a fresh issue. The shares are priced within the range of ₹665 to ₹700 per share. The issue continues to be open for subscription, with Tonbo Imaging's shares expected to list on the BSE and NSE on October 23. At the upper end of the price range, the company is targeting a valuation of ₹4,009.8 crore.

Prior to the IPO, Tonbo allocated 36.5 lakh shares to 43 anchor investors at ₹700 each, raising ₹255.4 crore. Originally a subsidiary of research company Sarnoff Corporation, Tonbo shifted its focus in 2012 to the design and development of advanced imaging and sensor systems for military applications. Its product offerings include thermal imaging systems, weapon sights, fire-control systems, and missile seekers.

Tonbo handles prototype development, system integration, and qualification testing in-house, while partnering with manufacturers like Kaynes Technology and Avalon Technology. Financially, Tonbo's revenue from operations declined by 22.7% to ₹362.6 crore in FY26 from ₹469.1 crore in FY25. Net profit also fell to ₹50.8 crore from ₹72.8 crore in the same period. In Q1 FY27, the company reported an operating revenue of ₹36 crore and a net loss of ₹17.7 crore.