Tenneco Clean Air IPO: A Strong Start with 42% Subscription on Day 1
Tenneco Clean Air Ltd.’s initial public offer was subscribed 42% on its first day of bidding on Wednesday, with the company’s Rs 3,900-crore IPO opening on Nov. 12 and closing on Nov. 14, with a price band of Rs 378 and Rs 397 per share.
JM Financial Ltd., Citigroup Global Markets India Pvt., Axis Capital Ltd. and HSBC Securities and Capital Markets (India) Pvt. will be the book running lead managers to the issue. The IPO share allotment status is expected to be finalised on Nov. 17. The firm will not receive any proceeds from the IPO as it is an entirely offer-for-sale issue.
Understanding the IPO Subscription
Qualified Institutional Buyers will be offered up to 50% of the net offer. Retail investors will be allocated at least 35% of the net issue and the remaining 15% will be reserved for Non-Institutional Investors. The Tenneco Clean Air IPO was subscribed 42% as of 5 p.m. on the first day, with Qualified Institutional Buyers (QIBs) subscribing 0.01 times or 1%, Non-Institutional Investors (NIIS) subscribing 1.11 times, and Retail Individual Investors subscribing 0.36 times or 36%.
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Tenneco Clean Air India: A Key Player in the Automotive Component Industry
Tenneco Clean Air India, a key subsidiary of the US-headquartered Tenneco Group, is a Tier I automotive component supplier. The parent company reported a revenue of $16,777 million for the fiscal year ended Dec. 31, 2024. Established in India in 1979 with its first manufacturing facility in Parwanoo, Himachal Pradesh, Tenneco Clean Air India specialises in manufacturing and supplying advanced, technology-driven clean air, powertrain and suspension solutions.
The company serves a diverse customer base across multiple vehicle segments, including passenger vehicles, commercial vehicles and industrial applications, such as generator sets, small commercial vehicles under 3.5 tonnes, two-wheelers and three-wheelers. Tenneco Clean Air India addresses the aftermarket through Motocare India Pvt., a subsidiary of Tenneco LLC.
Financial Performance and Future Prospects
Tenneco reported a consolidated revenue from operations of Rs 4,890 crore for fiscal 2025, as per the prospectus, in comparison to Rs 5,468 crore in fiscal 2024. The company’s profit after tax was Rs 552 crore during the same period. In fiscal 2024, the net profit stood at Rs 417 crore.
The latest GMP for the Tenneco Clean Air stood at Rs 79. With an upper price band of Rs 397 per share, the estimated listing price is likely to be Rs 476, as per Investorgain. This implies an expected listing gain of 19.90% per share for the Tenneco Clean Air IPO investors.
Note: GMP does not represent official data and is based on speculation. GMP data as per InvestorGain.
Conclusion
The Tenneco Clean Air IPO has seen a strong start with 42% subscription on the first day. With a diverse customer base and a strong presence in the automotive component industry, the company has a promising future ahead. However, investors must do their own research and consider their own risk tolerance before investing in the IPO.
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