Tonbo Imaging India Ltd. IPO

Tonbo Imaging India

• Tonbo Imaging India is coming out with a 100% book building; initial public offering (IPO) of 1,21,74,046 shares of face value Rs 2 each in a price band Rs 665-700 per equity share.
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on October 15, 2026 and will close on October 19, 2026.
• The shares will be listed on both BSE and NSE.
• The face value of the share is Rs 2 and is priced 332.50 times of its face value on the lower side and 350.00 on the higher side.
• Book running lead managers to the issue are JM Financial and IIFL Capital Services.
• Compliance officer for the issue is Ankita Agarwalla. 

Profile of the company

Tonbo Imaging India is a global defence electronics original equipment manufacturer (OEM). The company designs, develops and manufactures sensing, processing, communication and guidance systems for surveillance, reconnaissance, targeting, and control. It has developed a diversified product portfolio including thermal imaging cores, weapon sights, hand-held thermal imaging binoculars, targeting systems, missile seekers, fire control systems, missile guidance systems amongst others to enable autonomy on the battlefield.

The company’s expertise spans design capabilities across electro optics and infrared systems (EO/IR) and embedded vision systems serving both - Indian and global companies. Over the period of April 2024 to March 2026, the company is the largest manufacturer, in terms of sales value, of thermal imaging systems to government and defence agencies in India. In addition, the company’s market share of thermal imaging exports from India was 94% in terms of units, positioning it as the largest exporter of thermal imaging systems from India by units shipped between FY24 and FY26.

With over 28,000 systems deployed across 24 countries, as of June 30, 2026, the company is a recognized OEM providing a diverse suite of field-proven electro-optic products free from export restrictions under International Traffic in Arms Regulations (ITAR). ITAR is a U.S. export control framework governing the sale, transfer, and sharing of defence related technology, data, and services. Its EO/IR portfolio is free from ITAR, enabling it to serve non-aligned and export sensitive markets more flexibly, as it designs and develops its products within India, making it one of the few global OEMs capable of supplying cutting-edge technologies without geopolitical export limitations.

Proceed is being used for: 

• Achieving the benefits of listing the Equity Shares of face value of Rs 2 each on the Stock Exchanges and for the Offer for Sale of Equity Shares.

Industry overview

India's defence budget has demonstrated steady, if incremental, year-on-year growth over the past decade, reflecting both inflationary adjustments and a broader shift toward modernisation, strategic deterrence, and indigenisation. In FY2015, defence spending stood at $58.9 billion, and by FY2025 it had risen to $92.05 billion, marking a 4.6% CAGR over the ten-year period. India’s defence spending is projected to increase steadily from $96.0 billion in FY2026 to $113.6 billion by FY2030, reflecting a compound annual growth rate (CAGR) of 4.3% over the forecast period. For FY2025-26, the Ministry of Defence has allocated Rs 6,81,210.27 crore ($78.9 billion) to defence, of which Rs 1,92,388 crore ($22.3 billion) is earmarked as capital outlay. This represents a continuation of India’s gradual but deliberate pivot toward capability-building and modernization.

Meanwhile, defence electronics are the sensor, computing, communications, and control subsystems that let military platforms sense, decide, and act. They span sensing (Electro-Optical/Infrared, radar, ESM/EW, acoustic), navigation and timing (INS, GNSS, altimetry), onboard processing and AI (mission computers, DSP/FPGA/GPU, data-fusion), secure communications and networking (RF datalinks, SATCOM, FSO), human-machine interfaces (displays, sights), power/thermal management, and weapon electronics (seekers, fuzes, guidance and fire-control). These rugged, low-SWaP, cyber-resilient building blocks cut across soldiers, vehicles, ships, aircraft, missiles, and unmanned systems, and integrate with C4Intelligence, Surveillance, and Reconnaissance (ISR) for interoperable, network-centric operations. The global defence electronics market expanded from $60.7 billion in CY2020 to a projected $232.1 billion by CY2030, reflecting a CAGR of 14.4%. Growth is driven by digitization, modernization of legacy platforms, and rising demand for electronic warfare and surveillance.

Defence electronics is growing faster than the overall defence equipment market, with its share of total defence spending expected to climb from 25% in CY2020 to over 35% by CY2030. This shift is even more pronounced in programs involving Intelligence, Surveillance, and Reconnaissance (ISR), integrated air defence, multi-domain command and control, and autonomous systems, where electronics dominate both cost and capability envelopes. A growing global trend in modern battlefield digitisation is the adoption of Android Team Awareness Kit (ATAK) as a de-facto standard for connected soldier systems and real-time information sharing. ATAK is a global standard for connected systems on the battlefield and information sharing. It provides better situational awareness by assimilating information from sights, handheld imagers and drone imagery. 

Pros and strengths 

Proprietary technology ownership: The company is one of the few companies in India with no dependence on external technology partners as it owns 100% of its intellectual property since Fiscal 2024, pursuant to assignment agreements dated March 11, 2024 through which the company purchased intellectual property from CEAQ Singapore. The proprietary technology ranges from optics to embedded software and electronics including critical subsystems for sighting systems, including proprietary video engines, AI-accelerated image processing, and sub-5 urad multi-axis gimbal stabilization.

Asset-light business model: The company operates an asset-light business model with a focus on product design and development. The company is integrated horizontally: core design and IP are developed in-house, while manufacturing is outsourced to Electronics manufacturing services (EMS). The company’s contract manufacturing model allows it to focus on its R&D capabilities. Its EMS partners include certified contract manufacturers such as Kaynes Technology India Limited (Kaynes) and Avalon Technology and Services Private Limited (Avalon), who possess the technical expertise and required certifications.

Global defence market presence: The company is a global defence electronics OEM with a clientele spanning both domestic and international markets. Its products have been sold globally to customers in EU, US and Israel, enabling adoption in India through the global first approach, underscoring their acceptance in some of the world’s most advanced defence markets. As of June 30, 2026, the company has deployed over 28,000 tactical systems and served customers across 24 countries. 

Diversified defence product portfolio: The company is a global defence electronics OEM, with a track record of design and delivery of field-tested defence systems, designing and developing products primarily catering to military and armed forces across the globe. It has a portfolio of products addressing surveillance, reconnaissance and targeting applications for ground, air, naval and missile systems. It designs its products baselining its technology with developed markets and pricing them competitively for developing markets. The company’s products have been selected through globally competitive tenders, often prevailing over established international products.

Risks and concerns

Cyclical business and uncertain revenue visibility: The company’s business is cyclical in nature on account of it being geopolitically driven and subject to government budget cycles. Further, tender-based procurement cycle results in poor revenue visibility, which may have an adverse impact on its business, financial stability, results of operations, investor confidence, and the ability to secure financing for growth or innovation.

Significant revenue concentration among top customers: Some of its customers have contributed significantly to its revenue from operations. The company has garnered 92.06%, 53.03%, 86.36% and 72.19% of its revenue from top 5 customers in the three months ended June 30, 2026 and Fiscals 2026, 2025 and 2024, respectively. If its customers choose not to source their requirements from it or to terminate its contracts or purchase orders or tenders, its business, cash flows, financial condition and results of operations may be adversely affected.

Significant reliance on top ten suppliers: The company’s top ten suppliers contributed to a significant portion of its total expenses; 164.00%, 68.77%, 35.46%, and 67.49% of its total expenses in the three months ended June 30, 2026 and the Fiscals 2026, 2025 and 2024, respectively. The company is dependent on its top ten suppliers and failure to maintain its relationship with its suppliers could adversely affect business, financial condition, results of operations and prospects.

Dependence on international markets: As a global defence electronics OEM, the company’s business is dependent on exports and the performance of geographies where it supplies its products. In Fiscal 2025 and 2024, 65.52% and 48.61% of the company’s revenue from operations was from exports and in particular from exports to Europe. Any adverse changes in the geographies where it supplies its products could have an adverse impact on its business, cash flows, results of operations and financial condition.

Outlook

Tonbo Imaging India is a global defence electronics original equipment manufacturer (OEM) engaged in the design, development, and manufacturing of advanced electro-optic, infrared (EO/IR), embedded vision, communication, guidance, and surveillance systems for defence and security applications. On the concern side, the company faces significant risks due to customer and supplier concentration, dependence on exports and European markets, and the cyclical nature of its business driven by geopolitical developments and government budget cycles. Any loss of key customers or suppliers, adverse regional developments, or delays in tender awards could adversely affect its revenue visibility, cash flows, financial condition and results of operations.

The issue has been offering 1,21,74,046 shares in a price band of Rs 665-700 per equity share. The aggregate size of the offer is around Rs 809.57 crore to Rs 852.18 crore based on lower and upper price band respectively. Minimum application is to be made for 21 shares and in multiples thereof thereafter. On performance front, the company’s revenue from operations decreased by 22.69% from Rs 4,690.80 million in Fiscal 2025 to Rs 3,626.48 million in Fiscal 2026. Moreover, the company’s profit for the year was Rs 508.80 million in Fiscal 2026 as compared to Rs 727.57 million in Fiscal 2025.

Meanwhile, the company’s focus on R&D has been critical to the growth of its business. and has improved its ability to address customer requirements effectively. As a result, the company is continuously investing in technology, equipment and skilled employees to develop products that improve its customers’ experience. Further, the company’s focus on strategic areas such as product design, distribution and innovation will drive sustainable growth and maintain a strong pace of design-led product development. This will also provide it the opportunity to consolidate its position with its customers and increase the share of their supply needs that it fulfils.

Sahajanand Medical Technologies

• Sahajanand Medical Technologies is coming out with a 100% book building; initial public offering (IPO) of 1,38,22,116 shares of face value Rs 1 each in a price band Rs 327-344 per equity share.
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on October 15, 2026 and will close on October 19, 2026.
• The shares will be listed on both BSE and NSE.
• The face value of the share is Rs 1 and is priced 327 times of its face value on the lower side and 344 on the higher side.
• Book running lead managers to the issue are Motilal Oswal Investment Advisors, Avendus Capital, HSBC Securities and Capital Markets (India) and Nuvama Wealth Management.
• Compliance officer for the issue is Deepshikha Singhal. 

Profile of the company

Sahajanand Medical Technologies is a Class III and Class C/D medical devices company with a portfolio of technologically advanced medical devices across vascular and structural heart intervention. The company was founded by Dhirajlal Kotadia in 2001. The company was the first company in the world to receive a CE certification for a DES with a biodegradable polymer-based paclitaxel-eluting stent (Infinnium). Over the years, the company has introduced several innovative products, driven by its focus on research and development and precision manufacturing capabilities enabling it to deliver quality products backed by clinical data, with a presence across 65 countries (including India) in the three months ended June 30, 2026 and 77 countries (including India) in Fiscal 2026.

The company is a R&D-driven company engaged in the development of Class III and Class C/D medical devices, with an emphasis on Vascular Intervention (VI) and Structural Heart (SH). The company’s portfolio of (i) VI products includes coronary intervention products such as coronary stents and coronary balloons, (ii) SH products include TAVI and Occluders, and (iii) Others including its own brand of renal stents, peripheral DCBs and other trading products.

The company marketed its products in 77 countries (including India) in Fiscal 2026, through a mix of direct, hybrid, and distributor-led models, adapting to local regulatory and market conditions. In India, through its hybrid model, it caters to large hospitals, including Narayana Hrudayalaya Limited. In Europe, it has direct operations in major markets such as Germany, Spain, France and UK, successfully navigating complex regulatory and procurement environments. In certain other regions, such as Italy, it uses distributor-led models for efficient market entry and scaling. Its international revenue share has grown steadily over the past three years, reflecting increasing global acceptance and diversification of its business. 

Proceed is being used for: 

• Carrying out the Offer for Sale of Equity Shares of face value of Rs 1 each by the Promoter Selling Shareholder
• Achieving the benefits of listing the Equity Shares on the Stock Exchanges

Industry overview

The medical device industry is poised for sustained growth of 6.2%, underpinned by continuous innovation, regulatory evolution, and shifting demographic trends. The global medical device industry has undergone significant transformation over the past decade, driven by rapid advancements in technology, rampant deal-making, and value chain compression. In 2025, the industry was valued at approximately $540.3 billion, having grown at a CAGR of 3.2% from 2019 to 2025. With continued innovation, increased adoption of digital health solutions and artificial intelligence-driven diagnostics, increasing healthcare expenditures, improving infrastructure, and rising demand for early disease detection and personalized treatment, the market is forecasted to reach $729.8 billion by 2030, reflecting a projected CAGR of 6.2% during the 2025-2030 period.

The Indian Medical Device market is the fastest growing segment in the Indian healthcare market, and it is estimated to reach $50.1 billion by 2030 at a growth rate of 26.9% from its estimated value of $15.2 billion in 2025. The Indian Medical device market was estimated to contribute 1.65% of the global medical device market as of 2023, and India aims to reach 10-12% in global market share within 25 years. Export of medical devices from India increased from $2.3 billion in 2020 to $4.01 billion in 2025 at a CAGR of 11.8%, and it is projected to reach $20.0 billion in 2030 at a CAGR of 37.9% between 2025 and 2030.

Vascular intervention (VI) refers to minimally invasive procedures used to diagnose or treat diseases of the blood vessels. Vascular interventional devices, constituting 54.0% of the vascular devices market in 2025, encompass devices such as stents, catheters, angioplasty devices, atherectomy devices and renal denervation devices balloons used in minimally invasive procedures to treat coronary and peripheral artery disease. This segment, valued at $14.2 billion in 2025, is projected to reach $20.8 billion by 2030, growing at a CAGR of 7.9%, driven by the rising prevalence of cardiovascular diseases (CVDs), increasing adoption of PCI, and technological advancements in drug-eluting stents. Meanwhile, the global structural heart devices market is expected to reach $17.1 billion in 2030 from $12.1 billion in 2025 at a CAGR of 7.1%. The growth in the market is driven by both an increasing demand for minimally invasive cardiovascular procedures and improved adoption of TAVI and other products due to accessibility, affordability and quality outcomes. 

Pros and strengths 

Strong product portfolio and regulatory compliance: The company is among a select few Class III (and Class C/D) players in India and globally to have a comprehensive portfolio of advanced cardiovascular implants, with a product portfolio including DES, Drug-coated balloons, PTCA balloons, TAVI systems, and Occluders. Additionally, its product portfolio is supported by strong clinical evidence and complies with stringent regulatory standards in both domestic and international markets.

Strong research and development capabilities: The company operates two research and development (R&D) facilities located in India and Thailand. In India, its primary R&D center is situated in Surat, Gujarat and is recognized by the Department of Scientific and Industrial Research (DSIR), Government of India. The Surat R&D facility is ISO 13485:2016 certified and in Thailand, it operates a facility in Nonthaburi, which is certified under Thai GMP and holds CE certifications. It has demonstrated its commitment to research and development, with its R&D expenses.

Strong market position in DES and structural heart devices: The company is a key player in the DES market in India, with a market share of nearly 25.00% in FY2026 of the total DES volume sales in India. In addition to its leadership position in India, the company is among the top five companies in terms of market share by sales volume of DES in Germany, Spain, Poland and Brazil, as of March 31, 2026, demonstrating its global presence. Furthermore, it has effectively leveraged its leadership and experience in the DES market to successfully launch and scale its SH products, particularly focusing on TAVI and Occluder devices. The company is among the top five companies in terms of market share by sales volume of Occluders in Thailand, South Korea and India as of March 31, 2026.

Geographically diversified presence and global market reach: The company has established a geographically diversified presence, marketing its products in 65 countries (including India) in the three months ended June 30, 2026 and 77 countries (including India) in Fiscal 2026, with its top 10 countries contributing 79.82% and 78.76% of total revenue from operation in the three months ended June 30, 2026 and Fiscal 2026, respectively. To optimize its global sales, the company has adopted a tailored approach to market entry and expansion, utilizing a mix of direct, hybrid, and distributor-led models across different geographies. As of June 30, 2026, the company has a presence in six direct markets, 20 hybrid markets, and 39 distributor-led markets, each supported by region-specific strategies designed to maximize market penetration and operational efficiency.

Risks and concerns

Supplier concentration and raw material procurement risks: The company is dependent on the continued supply of raw materials and components, the supply and cost of which can be subject to significant variation due to factors outside its control. Additionally, the company is dependent on its suppliers (its top 10 suppliers contributed to 63.61%, 59.15%, 64.37% and 58.88% of total purchases in the three months ended June 30, 2026 and in Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively) for certain raw materials and components and a single supplier for certain components and an inability to procure the required quality and quantity, at competitive prices, its business, financial condition, cash flows and results of operations may be adversely affected.

High revenue dependency on key products: A majority of the company’s revenues are from the sale of Vascular Intervention devices (contributed to 60.40%, 61.14%, 65.86% and 68.57% of its revenue from operations in the three months ended June 30, 2026 and in Fiscals 2026, 2025 and 2024, respectively). Additionally, the sale of the Supraflex Cruz, which forms part of its VI devices portfolio contributed to 39.00%, 37.17%, 42.06% and 47.84% of its revenue from operations in the three months ended June 30, 2026, and in Fiscals 2026, 2025 and 2024, respectively. Any adverse impact on sales of products within this vertical, or of the Supraflex Cruz would adversely affect its business, results of operations and profitability.

Risk of losing market share due to intense competition: The medical device market is intensely competitive and is characterized by extensive R&D and rapid technological change. The company’s competitors include multinational companies as well as domestic companies. Customers consider various factors such as product quality, technology, breadth of product portfolio, cost, delivery and service, as well as quality and depth of relationships before choosing a medical device brand. As a result, to remain competitive in its markets, it must continuously strive to reduce its costs of production, transportation and distribution and improve its operating efficiencies, while developing advanced innovative products. Any quality problems with its processes, goods and services may harm its reputation for producing quality products and erode its competitive advantage, sales and market share.

Dependence on R&D capabilities and product innovation: The company’s future growth is dependent upon its R&D capabilities and development of new products and enhancement of existing products, and a failure to effectively develop and commercialize new products would materially and adversely affect its business, financial condition, results of operations and prospects. Further, its operating margins are subject to fluctuation on account of high allocation to R&D (which constituted 9.88%, 8.61%, 9.07% and 9.04% of its total revenue from operations in the three months ended June 30, 2026 and in Fiscals 2026, 2025 and 2024).

Outlook

Sahajanand Medical Technologies is a medical technology company engaged in the development, manufacturing and marketing of technologically advanced medical devices, primarily focused on vascular intervention and structural heart intervention. The company has strong research and development capabilities. It also has diversified and integrated manufacturing facilities. On the concern side, the company faces risks from intense competition, rapid technological changes, dependence on R&D capabilities and high expenditure on product development. Any failure to innovate, commercialize new products, maintain product quality or improve operational efficiency could adversely affect its market share, operating margins and financial performance.

The issue has been offering 1,38,22,116 shares in a price band of Rs 327-344 per equity share. The aggregate size of the offer is around Rs 451.98 crore to Rs 475.48 crore based on lower and upper price band respectively. Minimum application is to be made for 43 shares and in multiples thereof thereafter. On performance front, the company’s total revenue from operations increased by 18.11% to Rs 12,105.04 million in Fiscal 2026 from Rs 10,248.79 million in Fiscal 2025 primarily due to higher sales volumes across product verticals and geographies. Moreover, the company’s restated profit after tax increased by 174.66% to Rs 690.82 million in Fiscal 2026 from Rs 251.52 million in Fiscal 2025.

Meanwhile, the Indian market for VI, SH, and other product segments presents substantial growth opportunities. The company intends to leverage its strong network of KOL connections and local teams to further expand its SH portfolio. The company aims to do so by participating in conferences and through continuous scientific engagements with KOLs and physicians which will further enhance its market presence and brand reputation leading to higher realizations. It aims to continuously collect insights and market feedback to improve its products and identify new high growth, high value opportunities.