Tenneco Clean Air India IPO Reaches Bidding Climax
The initial public offering (IPO) of Tenneco Clean Air India entered its final chapter today, November 14, marking the last opportunity for investors to place their bids. The three-day bidding process, which commenced on Wednesday, November 12, has now concluded, with the market's verdict firmly in.
Strong Investor Response and Subscription Figures
The public issue witnessed a robust response, sailing through on its second day. By the end of Thursday, the IPO was booked 2.93 times overall, indicating healthy demand across investor categories. A deeper look reveals a particularly strong appetite from certain segments.
The portion reserved for Non-Institutional Investors (NIIs) was overwhelmingly subscribed 7.18 times. Qualified Institutional Buyers (QIBs) also showed significant interest, with their quota fetching 2.34 times subscription. The segment for Retail Individual Investors (RIIs) received a solid 1.44 times bids, reflecting mainstream investor participation.
Grey Market Premium and Listing Prospects
Adding to the positive sentiment, the Grey Market Premium (GMP) for Tenneco Clean Air India shares stood firm at ₹78 on the final bidding day. This premium indicates that the company's shares were commanding a price of ₹78 above the upper end of the IPO price band of ₹397 in the unofficial market.
Based on this prevailing GMP, analysts project that the listing price could be around ₹475, which would represent a handsome premium of 19.65% over the issue price for investors who secure an allotment.
IPO Structure and Analyst Views
The Tenneco Clean Air India IPO, valued at ₹3,600 crore, is structured entirely as an Offer for Sale (OFS) of 9.07 crore shares by the promoter, Tenneco Mauritius Holdings Ltd. Crucially, there is no fresh issue of equity, meaning the company will not receive any proceeds from the IPO; all funds will go directly to the selling shareholder.
The company is a key manufacturer of clean air, powertrain, and suspension solutions for Indian and international automotive OEMs. Brokerage opinions on the issue are mixed but lean positive.
Swastika Investmart assigned a 'Neutral' rating, acknowledging the company's fundamental strength and reasonable valuation. They noted a significant improvement in EBITDA margin from 11.19% in FY24 to 16.67% in FY25, but expressed caution due to a recent revenue decline and the absence of fresh capital for the company.
In contrast, Reliance Securities recommended a 'Subscribe' rating. They highlighted Tenneco's strong global lineage, diversified product portfolio, and strategic positioning to benefit from India's tightening emission norms and global regulatory shifts.
What Happens Next? Allotment and Listing Dates
With the bidding window now closed, the next key event is the allotment of shares. The IPO allotment is expected to be finalized on Monday, November 17. Successful allottees can then look forward to the debut of the company's equity shares on the stock exchanges. The listing is scheduled for Tuesday, November 19.
