- Price band fixed at ₹665–700; subscription opens October 15 and closes October 19
- Entire issue is an offer for sale of 1.22 crore shares by promoters and existing investors
- FY26 revenue falls 22.7% to ₹362.65 crore; profit after tax declines 30% to ₹50.88 crore
- Company has deployed more than 28,000 systems across 24 countries and owns its product intellectual property
- At least 50% of the net offer reserved for qualified institutional buyers, 15% for non-institutional investors and 35% for retail bidders
- Bengaluru defence-electronics maker develops thermal imaging, missile guidance and emerging anti-drone technologies
R MANICKAVASAGAM
AHMEDABAD, OCT 14
Can a home-grown defence technology company turn its specialised imaging and guidance systems into a compelling public-market proposition even as its revenue and profits decline? Tonbo Imaging India Limited is approaching investors with an ₹852.18-crore initial public offering (IPO), but the structure carries a crucial distinction: the entire issue is an offer for sale (OFS), meaning the company will receive no proceeds from the public offering.
The Bengaluru-based defence electronics manufacturer has fixed its price band at ₹665–700 per equity share of face value ₹2. The issue opens on Thursday, October 15, and closes on Monday, October 19, with anchor investor bidding scheduled for October 14. The offer comprises up to 1,21,74,046 equity shares being sold by promoters and existing shareholders.
Promoters and investors to monetise holdings
Promoters Arvind Kondangi Lakshmikumar, Ankit Kumar and Cecilia D’Souza are among the selling shareholders, alongside Vinimaya Advisory LLP, CE AQ Technologies, Timothy Guy Mitchell, Artiman Partners LLC, Amit Dilip Shah and Ramesh Radhakrishnan.
Because the IPO has no fresh-issue component, its proceeds will accrue to the selling shareholders rather than fund Tonbo’s research, manufacturing expansion or working capital. Investors will therefore need to evaluate the company on its financial performance, growth prospects and proposed valuation, rather than on any direct balance-sheet benefit from the offering.
Revenue and PAT decline in FY26
Tonbo’s financial performance presents an important consideration for prospective investors. Revenue from operations fell to ₹362.65 crore in FY26 from ₹469.08 crore in FY25, a decline of approximately 22.7%.
Profit after tax (PAT) dropped to ₹50.88 crore from ₹72.76 crore, a fall of around 30%. In the first quarter of FY27, revenue stood at approximately ₹36.01 crore, while the company reported a net loss of ₹17.74 crore.
The figures underline the need to examine the timing of defence orders, revenue recognition and the company’s ability to restore growth. The IPO prospectus and management disclosures should be consulted for the detailed explanation of these movements and the risks surrounding future execution.
From thermal imaging to anti-drone systems
Incorporated in December 2003, Tonbo designs, develops and manufactures electro-optic, infrared, embedded-vision, communication, guidance and surveillance systems for defence and security applications.
Its portfolio includes thermal imaging cores, weapon sights, handheld thermal binoculars, targeting systems, missile seekers, fire-control systems and missile-guidance systems. The company is also developing directed-energy systems intended to counter drone swarms.
As of June 30, 2026, Tonbo had deployed more than 28,000 systems across 24 countries. Its customers and end users include defence forces, law-enforcement agencies, homeland-security organisations and defence original equipment manufacturers.
The company designs and develops its products in India and operates an asset-light manufacturing model. Design, prototyping and testing are conducted at its Bengaluru research and development centre, while large-scale manufacturing is outsourced to certified electronics manufacturing partners.
Tonbo says it has owned 100% of the intellectual property used in its products since FY24. Its India-developed electro-optics and infrared portfolio is also positioned to remain free from US International Traffic in Arms Regulations (ITAR) restrictions, according to the company’s offer disclosures.
Share allocation: QIBs get 50%, retail 35%
Under the offer structure, 50% of the net offer is reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs) and 35% for Retail Individual Investors (RIIs), subject to the final offer terms and applicable regulations.
Investors can bid for a minimum of 21 shares and in multiples of 21 thereafter. At the upper price band of ₹700, the minimum application value is ₹14,700.
Eligible non-anchor applicants must use the Application Supported by Blocked Amount (ASBA) process, with the UPI mechanism available to applicable applicants. Allotment will be subject to valid bids and the applicable allocation rules.
BSE, NSE listing; two lead managers
Tonbo’s equity shares are proposed to be listed on BSE Limited and the National Stock Exchange of India Limited. The tentative listing date is October 23, 2026, subject to the final issue timetable and exchange announcements.
JM Financial Limited and IIFL Capital Services Limited are the book-running lead managers, while KFin Technologies Limited is the registrar to the issue.
Tonbo’s IPO offers investors exposure to an Indian defence electronics developer with international deployments and specialised technology capabilities. Yet the absence of fresh capital, alongside declining annual revenue and PAT and a first-quarter loss, makes its financial trajectory as important as its technological credentials.