Tonbo Imaging's ₹852 Crore IPO Is All Offer for Sale, at 79 Times Earnings

Tonbo Imaging opened its ₹852.2 crore IPO on Oct. 15 at ₹665 to ₹700 a share, an issue that is entirely an offer for sale, so the Bengaluru defence-technology company receives none of the money. The top of the band values it at ₹4,009.8 crore, while its revenue fell 22.7 percent in FY26.

The issue closes Oct. 19. Entrackr reports an anchor round of ₹255.36 crore, with 36.48 lakh shares allotted at ₹700, and Inc42 carries the price band and valuation. Listing on BSE and NSE is expected Oct. 23, with JM Financial and IIFL Capital Services as lead managers.

What the sellers take and what the company does not

The offer is 1.22 crore shares, cut from 1.81 crore in the draft papers, per Inc42. Selling shareholders include the promoters and co-founders Arvind Kondangi Lakshmikumar, Ankit Kumar and Cecilia D'Souza, plus investors CEAQ Technologies and Artiman Partners. Neither report gives per-seller stakes. At ₹700, 1.22 crore shares is ₹852 crore, so the seller group is taking out the whole amount.

An all-OFS issue is a statement about who needs cash. Tonbo's June quarter shows it is not the company: Q1 FY27 operating revenue was ₹36 crore against a net loss of ₹17.7 crore, per Inc42. The IPO adds shares to the public float and nothing to the balance sheet.

The multiples at ₹700

The ₹4,009.8 crore figure comes from Inc42 and is an upper-band valuation, not a closed price. Against FY26 net profit of ₹50.8 crore, it is about 79 times trailing earnings, my arithmetic. Against ₹362.6 crore of FY26 revenue it is about 11 times sales.

Measure	Figure	Source
FY26 revenue from operations	₹362.6 crore, down 22.7% from ₹469.1 crore	Inc42
FY26 net profit	₹50.8 crore, from ₹72.8 crore	Inc42
Valuation at ₹700	₹4,009.8 crore	Inc42
Series D, April 2025	₹175 crore at a reported ₹1,500 crore	Inc42

The Series D, from Florintree Advisors, Tenacity Ventures and EXIM Bank, was reported at ₹1,500 crore. The upper band is 2.7 times that, in about 18 months, as a company whose sales fell. The two reports also disagree on profit: Entrackr says it fell 30 percent, and Inc42 says 43 percent. Inc42's own figures, ₹72.8 crore to ₹50.8 crore, work out to 30 percent.

1. Series D, April 2025 (reported)1500 ₹ crore
2. IPO upper band, Oct. 20264009.8 ₹ crore

Source: Inc42, Oct. 12, 2026

Who bought before the book opened

The anchors Entrackr names are BlackRock, Goldman Sachs, Temasek Holdings, Allianz Global Investors, Prudential, SBI Mutual Fund, HDFC Mutual Fund and ICICI Prudential Mutual Fund. The ₹255.36 crore is about 30 percent of the issue.

Separately, the Free Press Journal reported about ₹413 crore of pre-IPO purchases from existing shareholders, also at ₹700, citing the prospectus. Amansa Investments bought 24.32 lakh shares for ₹170.24 crore, and it held 4.25 percent before the offer. SBI Emergent India Fund, HDFC Life Insurance and 360 ONE Multi-Stage Defence and Space Fund are among the other buyers it lists. These are secondary trades, so no money reached the company.

What the business shows

Inc42 says Tonbo has deployed more than 28,000 systems across 24 countries as of June 30, 2026, and makes them through Kaynes Technology and Avalon Technology under an asset-light model. It names no customers and gives no order book. A reader pricing a defence-electronics maker on 11 times sales would want both.

The comparison with other Indian filings is stark. Jio Platforms raises ₹27,500 crore of its ₹30,213 crore issue to repay debt, and Zetwerk's anchors also met a heavy seller list. The next facts are the subscription count at the Oct. 19 close and the allotment around Oct. 21.