Tonbo Imaging India IPO Day 2: GMP of ₹500 indicates healthy potential listing premium

The ₹852 crore Initial Public Offering of Tonbo Imaging India will open for bidding on the second day on Friday, October 16. The issue has been fully subscribed on the first day of bidding itself.As of bids closing on the first day, Tonbo Imaging's IPO saw bids worth nearly ₹2,400 crore, compared to the shares of ₹852 crore it plans on selling.Tonbo Imaging's IPO received an overall subscription of 3.99 times on the first day of bidding. Subscription of the IPO has been led by non-institutional investors , whose portion has been subscribed 5.93 times the total number of shares on offer.The portion of shares reserved for retail and Qualified Institutional Bidders has also received healthy subscription on the first day.

While the QIB portion has been subscribed 3.92 times so far, while the retail portion has been subscribed 3.19 times. Eligible employees have the largest subscription, at 6.47 times the shares on offer.Tonbo Imaging India is a lgobal defence electronics original equipment manufacturer specializing in electro-optics, infrared systems, and embedded vision technology.In an interaction with CNBC-TV18 on Thursday, the company's founder and Chief Executive Officer Arvind Lakshmikumar said that they have strong creditor relationships in place and working capital will not be an issue for them.The company is reaping the benefits of five to 10 years of product development, according to Lakshmikumar, who added that the company is expecting revenue between ₹2,500 crore to ₹3,500 crore from the Hypa Microwave Systems from financial year 2029-2030 onwards.As per unlisted market reports, the company's Grey Market Premium is indicating a very healthy listing for the stock. The GMP rates are currently indicating a premium of ₹500 per share, over and above the issue price of ₹700 per share, a 71% premium.However, it must be noted that the GMP rates are only speculative in nature and that the actual listing price could differ from the GMP rates.Tonbo Imaging's IPO is a complete Offer For Sale , which means that the company will not receive any proceeds from the issue. The issue will close for subscription on Monday, October 19.