Tonbo Imaging India will open its Rs 852 crore initial public offering (IPO) on October 15, with a price band of Rs 665-700 per share. The issue comprises 1.22 crore existing shares offered for sale by promoters and investors, with no fresh issue.
At the upper end, the company is valued at approximately Rs 4,010 crore, or about 79 times FY26 profit after tax. The offer closes on October 19, with listing expected on October 23.
The IPO is primarily an exit opportunity for existing shareholders. The largest sellers are CEAQ Technologies Private Limited, offering 49.98 lakh shares, and CEAQ Technologies Pte. Ltd., offering 41.55 lakh shares. Together, they account for about 75.2% of the shares on offer.
Promoters Arvind Kondangi Lakshmikumar, Ankit Kumar and Cecilia D’Souza will sell 11.50 lakh, 5.80 lakh and 2.30 lakh shares, respectively. Other sellers include Vinimaya Advisory LLP, Timothy Guy Mitchell, Artiman Partners and other individual and institutional investors.
The selling reflects an already investor-heavy ownership structure. Before the offer, CEAQ Singapore held 25.47%, CEAQ India 8.73% and HBL Engineering 14.25%. The three promoters collectively held 17.43%. Other notable shareholders included Florintree Flowtech LLP with 5.17%, Amansa Investments with 4.25% and Yali Deeptech Fund I with 4.19%.
If all offered shares are sold, the promoters’ combined stake would fall to approximately 14.01%, CEAQ India would exit its disclosed holding and CEAQ Singapore would retain about 18.22%. These are calculations based on the disclosed holdings and proposed sale quantities, rather than final post-offer figures.
The Bengaluru-based company, incorporated in 2003, develops thermal imaging equipment, tactical sights and integrated defence sensor platforms. Its prospects are supported by demand for indigenous defence technology, but its financial performance remains sensitive to large contracts and delivery schedules.
Revenue from operations increased 9.55% to Rs 469.08 crore in FY25 before falling 22.69% to Rs 362.65 crore in FY26.
The RHP attributes the fall to “delays in the execution of certain international orders due to disruptions arising from the West Asia conflict, as well as the deferment of certain anticipated orders from Fiscal 2026 to Fiscal 2027.”
The firm’s export sales fell 93.42% to Rs 20.21 crore, accounting for 5.57% of operating revenue, against Rs 307.34 crore and 65.52% in FY25. Domestic sales rose 114.89% to Rs 337.47 crore, or 93.06% of operating revenue, but could not offset the export decline.
Profit after tax fell 30.07% to Rs 50.88 crore in FY26, while EBITDA, or earnings before interest, tax, depreciation and amortisation, declined 24.77% to Rs 104.62 crore. The EBITDA margin eased to 28.85% from 29.65%.
The company’s operating cash flow was negative at Rs 63.22 crore in FY26, following an outflow of Rs 136.12 crore in FY25. The earlier outflow partly reflected payments for intellectual property acquired from CEAQ Singapore, while rising inventory and order timing have affected working capital.
The five largest customers accounted for 53.03% of FY26 revenue, leaving the company exposed to delays or changes in a relatively small number of contracts.
India’s defence exports reached Rs 38,424 crore in FY26, up 62.66% year-on-year, according to the Ministry of Defence. Paras Defence expected its exports to roughly double in FY27 amid heightened geopolitical tensions. These trends may support demand for specialised defence electronics.
Tonbo’s confirmed order book stood at Rs 314.24 crore at June 2026, with another Rs 118.15 crore of orders received between July and September.