Tenneco Clean Air India Ltd., a subsidiary of global auto component giant Tenneco Inc., has officially launched its Initial Public Offering (IPO) for public subscription starting November 12, 2025. The IPO, which is entirely an offer for sale (OFS), aims to raise ₹3,600 crore by selling 9.07 crore equity shares. The bidding window will remain open until November 14, with allotment expected on November 17 and listing scheduled for November 19 on both BSE and NSE.
IPO Structure and Price Band
The IPO is a book-built issue with a price band set between ₹378 and ₹397 per equity share. Investors can bid in lots of 37 shares, with a minimum investment of ₹14,000 approximately.
| IPO Details | Value |
|---|---|
| Issue Size | ₹3,600 crore |
| Shares Offered | 9.07 crore |
| Price Band | ₹378–₹397 per share |
| Lot Size | 37 shares |
| IPO Open Date | November 12, 2025 |
| IPO Close Date | November 14, 2025 |
| Allotment Date | November 17, 2025 |
| Listing Date | November 19, 2025 |
| Exchanges | BSE, NSE |
Since the issue is an OFS, no fresh capital will be infused into the company. All proceeds will go to the selling shareholders, including promoters and early investors.
Grey Market Premium (GMP) Trends
The IPO has generated buzz in the grey market, with the GMP fluctuating between ₹85 and ₹100 in the days leading up to the opening. As of November 12, the GMP stood at ₹87, indicating a potential listing gain of over 21% from the upper price band.
| Date | GMP (₹) | Estimated Listing Gain (%) |
|---|---|---|
| Nov 6 | ₹100 | 25.2% |
| Nov 7 | ₹85 | 21.4% |
| Nov 8 | ₹87 | 21.9% |
| Nov 12 | ₹87 | 21.9% |
While GMP is not an official indicator, it reflects market sentiment and demand among unofficial investors.
Company Overview: Tenneco Clean Air India Ltd.
Tenneco Clean Air India is engaged in manufacturing clean air and powertrain products for automotive OEMs. The company specializes in emission control systems, catalytic converters, mufflers, and exhaust modules. It serves both domestic and export markets, with clients including Maruti Suzuki, Hyundai, Tata Motors, and global players like Ford and Volkswagen.
| Segment | Products |
|---|---|
| Clean Air | Catalytic converters, mufflers, exhaust systems |
| Powertrain | Engine components, fuel systems |
The company operates multiple manufacturing facilities across India and has a strong R&D base aligned with global emission standards.
Financial Performance Snapshot
| Metric | FY23 | FY24 | H1 FY25 |
|---|---|---|---|
| Revenue | ₹2,950 crore | ₹3,180 crore | ₹1,620 crore |
| EBITDA | ₹420 crore | ₹460 crore | ₹240 crore |
| Net Profit | ₹210 crore | ₹235 crore | ₹118 crore |
| EBITDA Margin | 14.2% | 14.5% | 14.8% |
Tenneco Clean Air has shown consistent growth in revenue and profitability, supported by rising demand for emission-compliant auto components.
Strengths and Risks
Strengths:
- Strong parentage under Tenneco Inc.
- Diversified customer base across geographies
- Compliance with global emission norms
- Robust manufacturing and R&D infrastructure
Risks:
- Entire IPO is OFS—no capital for expansion
- High dependence on cyclical auto industry
- Foreign exchange exposure due to exports
- Competitive pressure from domestic and global peers
Peer Comparison
| Company | Revenue (FY24) | Net Profit (FY24) | P/E Ratio | Market Cap |
|---|---|---|---|---|
| Tenneco Clean Air | ₹3,180 crore | ₹235 crore | ~22x (expected) | ₹12,000 crore (projected) |
| Bosch Ltd | ₹14,000 crore | ₹1,200 crore | 28x | ₹45,000 crore |
| Motherson Sumi | ₹25,000 crore | ₹1,800 crore | 30x | ₹65,000 crore |
Tenneco Clean Air’s valuation appears moderate compared to peers, making it a potentially attractive bet for long-term investors.
Subscription Strategy and Investor Outlook
Retail investors are advised to evaluate the IPO based on fundamentals, GMP trends, and sector outlook. Given the company’s stable financials and strong industry positioning, the IPO may offer decent listing gains and long-term value.
Institutional interest is expected to be high, especially from ESG-focused funds and auto sector specialists.
Conclusion
Tenneco Clean Air’s ₹3,600 crore IPO offers investors a chance to participate in India’s growing clean mobility ecosystem. With a competitive price band, strong GMP, and solid financials, the IPO is likely to attract significant interest across investor categories. However, since the issue is entirely an OFS, investors should weigh long-term growth prospects against the absence of fresh capital infusion.
Disclaimer: This article is based on publicly available IPO documents and market data. Investors are advised to consult certified financial advisors and official filings before making investment decisions.
