India's defence-tech IPO pipeline roared on Monday, October 19: defence electronics maker Tonbo Imaging India's ₹852-crore IPO — entirely an offer for sale of 1.22 crore shares — was subscribed 48.76 times by 2 pm on its final day, with the grey market premium (GMP) surging to around 74% ahead of the proposed October 23 listing.
The issue received bids for 41.58 crore shares against 85.26 lakh on offer. Demand was broad-based: non-institutional investors subscribed 114.56 times, qualified institutional buyers 46.38 times, retail 21.96 times, and the employee quota 40.58 times.
At the top of the ₹665–700 price band, a 74% GMP implies a potential listing around ₹1,218. Ahead of the public issue, the company raised ₹255.36 crore from anchor investors by allotting 36.48 lakh shares at ₹700 apiece — anchors included BlackRock, Goldman Sachs, Temasek, Allianz Global Investors, Prudential, SBI MF, HDFC MF and ICICI Prudential MF. Allotment is expected on October 21.
Founded in 2012 and headquartered in Bengaluru, Tonbo is a defence electronics OEM specialising in electro-optical and infrared imaging systems, AI-based seekers and thermal weapon sights — and one of India's largest manufacturers and exporters of thermal imaging systems for military and government users, accounting for 94% of the country's thermal imaging exports by volume.
The caution flag: total income declined to ₹369.94 crore in FY26 (from ₹474.39 crore in FY25), PAT fell to ₹50.88 crore (from ₹72.76 crore), and Q1 FY27 posted a net loss of ₹17.74 crore — yet investor demand hit 49x. Grey market premiums are unofficial sentiment indicators and guarantee nothing.
Why it matters for founders
Tonbo proves deep-tech and defence startups can command public-market frenzy even with declining revenues — when the IP and export dominance story is real. But 49x subscription on falling numbers also means the listing carries expectations. If you're in hardware/defence, build the export and technology moat; the market is clearly hungry for it.