Tonbo Imaging is a Bengaluru defence-electronics maker of thermal imaging, weapon sights, missile seekers, fire-control and guidance systems, and is developing "WaveStrike", a high-power-microwave anti-drone system. It has more than 28,000 systems deployed in 24 countries on its own ITAR-free IP, and describes itself as India's largest maker and exporter of thermal imaging systems for defence (FY24–26).

The issue is entirely an offer for sale of 1.22 crore shares by the promoters and investors including CEAQ Technologies and Artiman; 14,000 shares are reserved for employees. The company raised ₹255.36 crore from anchor investors on 14 October 2026 (36.48 lakh shares at ₹700).

Objects of the issue

  • None for the company — this is a 100% offer for sale, so the money goes to the selling shareholders

Key numbers

  • Market cap at upper band: ₹4,010 crore
  • Valuation: about 78.8x FY26 earnings (EPS ₹8.88); price-to-book about 7.25x; Q1 FY27 was loss-making
  • FY26: revenue from operations ₹362.64 crore (down about 22%), PAT down 30%, EBITDA margin 28.85%
  • Order book: ₹314.24 crore at 30 June 2026
  • Promoter holding: 18.58% pre-issue → 15.72% post-issue
  • Listed peers (P/E): Paras Defence 117.9x, Data Patterns 87.3x, Astra Microwave 83.9x, Zen Technologies 73.4x, BEL 45.7x

Strengths

  • Strongest demand of the October batch: 7.78x subscribed by the end of day 2, led by HNIs
  • Own export-ready (ITAR-free) IP and high gross margins, with an anti-drone pipeline
  • Modest debt relative to net worth

Risks

  • Shrinking business: FY26 revenue and profit fell, and Q1 FY27 was a loss on ₹37 crore of income
  • Lumpy government-tender revenue; top customers account for most sales
  • Working capital is stretched and operating cash flow was negative in FY25 and FY26
  • 100% offer for sale with a low promoter stake; a high GMP can fade quickly

Financials are restated consolidated figures in ₹ crore; "Revenue" is total income. Subscription figures are as of the end of day 2 (16 October, about 5 PM); bidding closes on Monday 19 October (UPI mandates by 5 PM). Grey market premium is unofficial and changes quickly.