Tonbo Imaging IPO opens today: Should you subscribe or skip? Price band, reviews, fresh GMP & more

Incorporated in December 2003, Bengaluru-based Tonbo Imaging India is a global defence electronics OEM engaged in the design, development, and manufacturing of advanced electro-optic, infrared (EO/IR), embedded vision, communication, guidance, and surveillance systems for defence and security applications. It offers a diversified portfolio of battlefield solutions.

Ahead of its IPO, Tonbo Imaging raised Rs 255.36 crore from 43 anchor investors as it allocated 36,48,013 equity shares for Rs 700 apeice. Its anchor book included names like SBI MF, HDFC MF, Kotak Mahindra Trustee Co, Aranda Investments, Goldman Sachs, Blackrock, WhiteOak Capital, Aditya Birla MF, Axis MF, Mirae Asset MF, Helio's India MF, Canara Robeco MF, Tata AIA Life and more.

Tonbo Imaging reported a net loss of Rs 17.74 crore, with a revenue of Rs 37.32 crore for the quarter ended on June 30, 2026. It clocked a net profit of Rs 50.88 crore with a revenue of Rs 369.94 crore for the financial year 2025-26. At the current valuations, it commands a market capitalization close to Rs 4,010 crore.

Tonbo Imaging India has reserved 50 per cent of the net offer for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will have 15 per cent of allocation. Retail investors have 35 per cent of the reservation in the issue. Last heard, Tonbo Imaging was commanding a grey market premium (GMP) of Rs 490-500 apeice, suggesting a listing pop of 70-72 per cent for investors.

JM Financial Ltd and IIFL Capital Services are the book running lead managers for Tonbo Imaging India IPO and Kfin Technologies is the registrar of the issue. Shares of the company shall be listed at the bourses on Friday, October 23. Here's what a host of brokerage firms say about the IPO of Tonbo Imaging:

ICICIDirect Research
Rating: Subscribe
Tonbo Imaging looks well poised to gain from increasing global focus towards electromagnetic systems & asymmetric warfare, which would help the company in getting significant orders in the medium to long-term. In the near term, pick-up in execution, sustainable margins and reduction in working capital days would drive growth, said ICICI Direct.

Though valuation at 80 times P/E (on FY26 EPS) and 11 times market-cap/sales may seem fair, we believe that future visibility looks better led by multiple growth factors We assign 'subscribe' rating," it added and cited supply chain instability, high working capital requirement, dependence on government contracts, change in technology.

SBI Securities
Rating: Subscribe
Tonbo Imaging stands to benefit from defence indigenization and growing demand for advanced surveillance and thermal imaging systems, revenue visibility looks limited due to long sales cycles and tender-driven procurement. Export revenue contribution declined to 6.9 per cent in FY26 due to a large one-off export order. The nature of business is seasonally skewed, said SBI Securities.

"The order book stood at Rs 314 crore as of June 2026. Considering its strong technological moat, favorable industry tailwinds and growing domestic defence opportunities, balanced against earnings volatility, slower execution, delayed order inflows and working capital risks, we recommend investors to 'subscribe' to the issue for long-term investment horizon," it added.

Sushil Finance
Rating: Neutral
Revenue is lumpy and tender-driven, with the top 10 customers contributing 77.83 per cent of FY2026 revenue but the Rs 314.24 crore order book offers some visibility. The issue is a pure OFS and promoters will hold only 15.72 per cent post-issue. The valuations leave little margin of safety given declining earnings. We therefore take a cautious stance, said Sushil Finance.

BP Equities
Rating: Subscribe
Tonbo Imaging is trading in line with domestic defence peers. While extended working capital cycles pose liquidity friction, Tonbo’s verified profitability, proprietary non-ITAR IP moat, confirmed order book of Rs 314.2 crores, and high alignment with the Indian Ministry of Defence’s IDDM mandate provide compelling long-term visibility, said BP Equities with a 'subscribe' rating.

Religare Broking
Rating: Neutral
Tonbo Imaging appears highly valued relative to its recent performance. It has demonstrated strong operating margins in previous years, supported by its specialised defence technologies and global presence. However, its FY26 sales and net earnings declined, while capital and equity returns weakened, reflecting lower operating efficiency, said Religare Broking.

"Its order book improved compared with FY25 but remained below FY24 levels, and its financial performance trails several listed peers on key parameters. While growing demand for defence electronics offers long-term growth opportunities, recent performance remains a concern. Therefore, we assign a 'neutral rating to this IPO," it added.

Swastika Investmart
Rating: Neutral
Tonbo designs proprietary micro-optics, thermal sensors, and edgeAI target-acquisition systems. Unlike build-to-print suppliers, its ownership of core IP commands high gross margins. Tonbo is priced at a slight discount to niche high-beta defence electronics peers, said Swastika Investmart.

"However, its return on equity and net worth (9.7 per cent) trails these peers significantly because FY26 saw revenue compression. Entire proceeds go to selling PE funds and founders; no capital goes into R&D or expansion. A strong moat in high-tech defence optics, but long-term upside depends on order execution consistency and earnings volatility recovery," it added with a 'neutral' tag.

Ventura Securities
Rating: Subscribe
Tonbo Imaging follows an asset-light model, retaining core product design & intellectual property while outsourcing manufacturing to partners including Kaynes Technology and Avalon Technology. It had deployed over 28,000 systems in 24 countries and employed 130 engineers at its Bengaluru R&D centre. Its capabilities include infrared imaging, computer vision, precision stabilisation and autonomous fire control, said Ventura with a 'subscribe' rating.