A defence technology stock that rarely makes headlines is about to become the talk of Dalal Street. Bengaluru-based Tonbo Imaging India’s Rs 852.18 crore initial public offering opens for subscription today, October 15, and closes on October 19. The company, which builds thermal imaging systems, weapon sights and counter-drone technology for armed forces, is commanding one of the strongest grey market premiums seen in recent months.
In the unofficial grey market, Tonbo Imaging shares are quoting a premium of around Rs 490 to Rs 500 over the upper end of the price band. That points to an estimated listing price of roughly Rs 1,200, or a gain of about 70 per cent over the Rs 700 upper price. For a retail investor applying for one lot, the implied gain works out to over Rs 10,000. Grey market premiums are unofficial and can swing sharply before listing, so they signal mood, not a promise.
What the company actually does
Tonbo Imaging was founded in 2003 and is billed as India’s largest manufacturer and exporter of thermal imaging systems. Its catalogue reads like a defence shopping list: thermal imaging cores, weapon sights, handheld thermal binoculars, targeting systems, missile seekers, fire-control systems and missile-guidance systems. It has also moved into counter-drone technology, an area climbing fast on every military’s priority list.
The firm positions itself as a pure-play defence electronics company built around the Make in India push. That tag matters now. With the government driving domestic defence manufacturing and export orders growing, companies that make critical military electronics rather than just assembling them are fetching premium valuations.
A pure offer for sale
Here is the part investors should read carefully. The entire Rs 852.18 crore issue is an offer for sale of 1.22 crore shares by existing shareholders, which means Tonbo Imaging itself will not receive a single rupee. All proceeds, after issue expenses, go to the sellers.
The selling shareholders include promoters Arvind Kondangi, Lakshmikumar, Ankit Kumar and Cecilia D’Souza, along with early investors CEAQ Technologies, Timothy Guy Mitchell, Artiman Partners and Ramesh Radhakrishnan. The price band is Rs 665 to Rs 700 per share, and one lot of 21 shares costs Rs 14,700 at the top of the band.
Half of the net issue is reserved for institutional buyers, 15 per cent for non-institutional investors and 35 per cent for retail. The anchor book opened on October 14, a day before the public issue. JM Financial and IIFL Capital Services are the lead managers.
What analysts say
Brokerages are cautiously positive. Swastika Investmart notes that Tonbo is priced at a slight discount to niche defence electronics peers like Data Patterns, trading at around 118 times earnings, and Astra Microwave at about 87 times. But it flags a worry: return on equity to net worth is just 9.7 per cent, trailing peers by a distance, partly because revenue compressed in FY26.
The summary is balanced. Tonbo has a real moat in high-tech defence optics, but its long-term upside depends on consistent order execution and a recovery from earnings volatility. The technology edge is genuine; investors are being asked to pay up before the numbers fully catch up.
A crowded IPO street
Tonbo is not opening alone. It is part of a pre-Diwali IPO rush worth over Rs 50,000 crore. Opening alongside it today are gear-maker Bonfiglioli Transmissions with a Rs 2,533.66 crore issue, Zetwerk’s Rs 5,012.33 crore manufacturing IPO and Sahajanand Medical Technologies’ Rs 475.48 crore offer. Jio Platforms’ mega Rs 30,200 crore IPO follows on October 21.
The timing also lands in a choppy market. The Sensex closed at 72,781.89 and the Nifty 50 at 22,622.70 on October 14, both in the red as rising crude and global uncertainty weighed. Strong IPOs have still found buyers, but weak market days can cool grey market premiums quickly.
FAQs
When does the Tonbo Imaging IPO open and close?
It opens on October 15, 2026 and closes on October 19, 2026. The anchor book for institutional investors opened on October 14.
What is the price band and lot size?
The price band is Rs 665 to Rs 700 per share. One lot has 21 shares, so the minimum retail investment is Rs 14,700 at the upper end.
What is the Tonbo Imaging GMP today?
The grey market premium is around Rs 490 to Rs 500, implying a listing price near Rs 1,200 and a gain of about 70 per cent. GMP is unofficial and moves frequently.
When will the shares be listed?
Allotment is expected on October 21, with listing on the NSE and BSE tentatively scheduled for October 23, 2026.
Does the company receive any IPO money?
No. It is a 100 per cent offer for sale, so all proceeds go to the selling promoters and investors, not to Tonbo Imaging.
Tonbo Imaging’s debut will be watched as a test of appetite for pure-play defence technology. Whether the grey market’s 70 per cent enthusiasm survives until listing day is the question everyone on the Street is asking.
