Tonbo Imaging shares list at 66% premium on BSE, NSE — should you buy, sell or hold?

The listing is in line with the grey market expectation. The GMP had indicated an estimated listing gain of around 65 percent on the morning of October 23, according to Investorgain. Investors must note that the GMP is an unofficial indicator of investor sentiment and does not guarantee listing gains. Read Also: Bonfiglioli Transmissions shares list flat at IPO price of Rs 586 on BSE, NSE — should you buy, sell or hold?

The Rs 852.18-crore IPO closed for subscription on October 19, attracting bids for 1,15,86,91,464 shares against 85,26,033 shares on offer. The issue was subscribed 135.9 times, according to data from the National Stock Exchange (NSE). The IPO witnessed strong demand across all investor categories. The Qualified Institutional Buyers (QIBs) portion was subscribed 293.56 times, while the Non-Institutional Investors (NIIs) category saw 170.94 times subscription.

The Retail Individual Investors (RIIs) portion was subscribed 31.06 times. The company had fixed the IPO price band at Rs 665-700 per share. The lot size was 21 shares, requiring a minimum investment of Rs 14,700 for retail investors applying at the upper end of the price band. The public issue comprised an offer for sale (OFS) of 1,21,74,046 equity shares, with no fresh issue component. At the upper end of the price band, the issue was valued at Rs 852.18 crore, implying a market capitalisation of around Rs 4,010 crore.

Since the IPO is entirely an OFS, Tonbo Imaging India will not receive any proceeds from the share sale. Instead, the proceeds, after applicable expenses, will go to the existing shareholders selling their stakes. Should you buy, sell or hold? Mahesh M. Ojha, Vice President Research & Business Development at Kantilal Chhaganlal Securities Pvt. Ltd. said, "Considering the strong product demand, favourable sector outlook and long-term growth potential, IPO Allottee investor can book partial listing gain remaining can be held."

Another analyst, Sarvam Goel, Founder of Pocketful, said, "Investors who received allotment should hold for the long term. Those who missed the IPO can use any post-listing correction as an entry point." About Tonbo Imaging India Incorporated in 2003, Tonbo Imaging India designs and manufactures electro-optic and electronic systems for defence applications. Its product portfolio includes thermal imaging systems, weapon sights, handheld thermal imaging binoculars, targeting systems, missile seekers, fire-control systems and missile-guidance systems. The company's technologies are used in surveillance, reconnaissance, targeting and other military applications.