Tonbo Imaging IPO Gets A Strong Start, But Does Growth Justify Its Valuation?

Tonbo Imaging’s ₹852.18 Cr IPO received strong early demand, amid rising investor interest in India’s defence tech sector

The company’s thermal imaging, missile seeker and counter-drone technologies offer growth opportunities, but revenue and profit declined in FY26

At a valuation of around ₹4,010 Cr, Tonbo must convert its order pipeline into sustained growth and stronger cash generation to justify investor expectations

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From the Iran war to rising geopolitical tensions across the globe, conflicts are driving demand for advanced defence technologies, from thermal imaging and missile guidance to systems that can counter drone swarms. Against this backdrop, Tonbo Imaging’s ₹852.18 Cr IPO offers investors a chance to bet on India’s growing defence tech sector.

Bengaluru-based defence tech company’s IPO remained in strong demand on the second day of bidding, garnering 6.29x subscription by 1:30 PM on October 16, according to BSE data, while its grey market premium (GMP) surged to as high as 71%.

The Bengaluru-based company has fixed its price band at ₹665-700 per share, valuing it at around ₹4,010 Cr at the upper end. The IPO closes on October 19.

The offer-for-sale-only issue comprises 1.22 Cr equity shares by existing shareholders. Investors can bid for a minimum of 21 shares, translating into an investment of ₹14,700 at........

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