Tonbo Imaging India plans to conduct an Initial Public Offering (IPO) worth 852 crore rupees, which will open on October 15. The offering price is set in the range of 665 to 700 rupees per share. This issuance includes 1.22 crore existing shares offered for sale by promoters and investors; no new issuance is planned.
At the upper limit of the price range, the company is valued at approximately 4,010 crore rupees, corresponding to an approximate trailing twelve months (TTM) earnings multiple of 79 for fiscal year 26. The offer closes on October 19, and listing is expected on October 23.
The primary objective of this IPO is to provide an exit opportunity for existing shareholders. The largest sellers are CEAQ Technologies Private Limited, offering 49.98 lakh shares, and CEAQ Technologies Pte. Ltd., which offers 41.55 lakh shares. Together, they account for about 75.2% of the total shares in the offering.
Promoters, including Arvind Kondangi Lakshmikumar, Ankit Kumar, and Cecilia D’Souza, intend to sell 11.50 lakh, 5.80 lakh, and 2.30 lakh shares, respectively. Other sellers include Vinimaya Advisory LLP, Timothy Guy Mitchell, Artiman Partners, as well as private and institutional investors.
This sale reflects the established ownership structure, where a significant portion is held by investors. Before the offering, CEAQ Singapore held 25.47%, CEAQ India held 8.73%, and HBL Engineering held 14.25%. The three promoters collectively held 17.43%. Other notable shareholders included Florintree Flowtech LLP with a 5.17% stake, Amansa Investments with 4.25%, and Yali Deeptech Fund I with 4.19%.
If all offered shares are sold, the collective promoter stake will decrease to approximately 14.01%, CEAQ India will exit its stated holding, and CEAQ Singapore will retain about 18.22%. It should be noted that these calculations are based on disclosed stakes and offered volumes, not final figures after the offering.
The Bengaluru-based company, established in 2003, develops equipment for thermal imaging surveillance, tactical sights, and integrated defense sensor platforms. Its prospects are supported by the demand for domestic defense technologies, but its financial results remain sensitive to large contracts and delivery schedules.
Revenue from operations increased by 9.55% to 469.08 crore rupees in fiscal year 25, but subsequently decreased by 22.69% to 362.65 crore rupees in fiscal year 26. Company management attributes this decline to 'delays in fulfilling some international orders due to disruptions arising from the Middle East conflict, as well as the postponement of some expected orders from fiscal year 2026 to fiscal year 2027.'
The firm's export sales dropped by 93.42% to 20.21 crore rupees, accounting for 5.57% of operating revenue, compared to 307.34 crore rupees and 65.52% in fiscal year 25. Meanwhile, domestic sales grew by 114.89% to 337.47 crore rupees, or 93.06% of operating revenue, but this was insufficient to offset the decline in exports.
Profit after tax decreased by 30.07% to 50.88 crore rupees in fiscal year 26, while EBITDA, or Earnings Before Interest, Taxes, Depreciation, and Amortization, fell by 24.77% to 104.62 crore rupees. The EBITDA margin slightly decreased from 29.65% to 28.85%.
The company's operating cash flow was negative at 63.22 crore rupees in fiscal year 26, following an outflow of 136.12 crore rupees in fiscal year 25. The earlier outflow partially reflected payments for intellectual property acquired from CEAQ Singapore, whereas inventory build-up and order timelines impacted working capital.
The five largest customers accounted for 53.03% of revenue in fiscal year 26, making the company vulnerable to delays or changes in a relatively small number of contracts.
According to the Ministry of Defence, India's defense exports reached 38,424 crore rupees in fiscal year 26, a 62.66% increase compared to the previous year. Paras Defence predicts that the company's exports will roughly double in fiscal year 27 amid heightened geopolitical tensions. These trends may support the demand for specialized defense electronics. Tonbo's contract portfolio for June 2026 stood at 314.24 crore rupees, with another 118.15 crore rupees in orders received between July and September.