Defence major Tonbo Imaging has received SEBI approval for its IPO through an offer-for-sale initial public offering (OFS), and the Bengaluru-based firm’s shareholders will offload 1.8 crore equity shares of face value Rs 2 each. The offer comprises no fresh component

JM Financial and IIFL Capital are managing the book-running lead managers appointed for the IPO, while KFin Technologies is the registrar for the offer. 

Here are all the key details investors must know about the issue:

Tonbo Imaging IPO: Segment-wise allocation

Up to 50% of the net offer will be available for qualified institutional buyers (QIBs), while at least 15% of the offer shall be available to non-institutional bidders. The reserved offer size for retail applicants shall not be less than 35%. 

According to the draft red herring prospectus, total shares reserved for employees can be up to 5% of the company’s equity share capital after the IPO. Eligible employees can apply for shares aggregating Rs 2 lakh. However, if the segment is undersubscribed, the total allotment cannot exceed Rs 5 lakh.

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Tonbo Imaging IPO: FY26 financial results

For the financial year ended March 30, 2026, the company reported its restated profit at Rs 50.8 crore, down from Rs 72.7 crore reported in the same period last year. Its revenue from operations for FY26 was reported at Rs 362.6 crore, declining 22% year-on-year against Rs 469 crore reported in FY25. 

Tonbo Imaging IPO: Key risk factors

The Tonbo Imaging IPO is vulnerable to several risk factors, some of which include government defence tenders subject to delays and dependency on a limited number of customers for revenue generation. In FY26,  the defence major’s largest customer contributed 13.78% of the company’s total revenue from operations. Additionally, Tonbo’s order book is currently concentrated among a few large clients, primarily in global militaries. 

Also, Tonbo Imaging’s high dependency on exports, a possible failure to comply with regulatory guidelines, and failure to arrange adequate working capital may affect its profitability. 

About the company

Tonbo Imaging is a defence electronics original equipment manufacturer. The company is engaged in the business of designing, developing, and manufacturing sensing, processing, communication and guidance systems for surveillance, reconnaissance, targeting, and control. 

Its product portfolio includes: thermal imaging cores, weapon sights, hand-held thermal imaging binoculars, targeting systems, missile seekers, fire control systems, missile guidance systems, amongst others.