After strong IPO listing, Tonbo Imaging shares rally for 2nd session today | Should you book profits? Target, stop loss

On the BSE, it opened at ₹1,162, registering a 66% premium. The stock has since surged nearly 90% above its IPO price, highlighting robust investor interest following its listing. Tonbo Imaging share price - Buy, sell or hold? According to Mahesh M Ojha, VP Research & Business Development at Kantilal Chhaganlal Securities, Tonbo Imaging’s valuations appear to be on the higher side, which may limit near-term upside.

“The company’s long-term prospects look positive, supported by its growth potential. Investors with a two- to three-year investment horizon can consider buying and holding the stock, as the company appears well-positioned for growth over the long term. That said, investors should remain mindful of the elevated valuations and the risks associated with them,” Ojha added. Meanwhile, Gaurav Garg, Head - Research, Lemonn, believes that the subsequent rally reflects optimism around India’s defence-electronics sector and demand for advanced thermal imaging, surveillance, targeting and guidance systems.

However, investors should distinguish this market enthusiasm from the company’s underlying earnings performance “My recommendation is to book partial profits for investors who received IPO allotment, while holding the remaining shares only if they have a long-term investment horizon and can tolerate high volatility. For investors who missed the IPO, chasing the stock after its steep post-listing rally would be risky.

A better approach is to wait for a meaningful price correction and assess whether revenue growth, profitability and cash-flow generation improve in subsequent quarters,” said Garg. Tonbo Imaging IPO details The initial public offering (IPO) of defence electronics manufacturer Tonbo Imaging India Ltd was subscribed 135.90 times on the final day of bidding, reflecting strong investor interest across categories, according to data from the NSE.

The ₹852.18-crore issue attracted bids for 1,15,87,19,247 shares against 85,26,033 shares on offer. Qualified institutional buyers (QIBs) led the subscription, with their reserved portion subscribed 293.56 times. The non-institutional investor (NII) category saw 170.94 times subscription, while the retail portion was subscribed 31.07 times. The IPO was offered in a price band of ₹665–700 per share and comprised an offer for sale (OFS) of 1.22 crore equity shares by promoters and existing shareholders.

Since the issue was entirely an OFS, the company will not receive any proceeds from the IPO. Tonbo Imaging specialises in designing and manufacturing sensing, processing, communication and guidance systems used in surveillance, reconnaissance, targeting and control applications. Its product range includes thermal imaging cores, weapon sights, targeting systems, missile seekers, fire control systems and missile guidance systems.