The much-anticipated initial public offering (IPO) of Tenneco Clean Air India is set to open for public subscription on Wednesday, October 18. As a key segment of the US-headquartered Tenneco Group, a global automotive parts supplier, the company is a significant player in India's automotive manufacturing landscape.
Company Profile and Market Position
Tenneco Clean Air India specializes in designing, manufacturing, and supplying critical clean air, powertrain, and suspension solutions for Indian original equipment manufacturers (OEMs) and international markets. With an extensive network of 12 manufacturing plants, the company has established itself as the leading supplier of clean air solutions for commercial truck OEMs and shock absorbers for passenger vehicle OEMs in India. Its aftermarket products are distributed through its affiliate, Motocare India.
Financial Highlights and IPO Details
The company has demonstrated robust financial health. For the quarter ending June 2025, Tenneco Clean Air reported a profit of ₹167.8 crore, marking a 12% increase from the ₹150 crore recorded in the same quarter of the previous fiscal year. Revenue for the quarter saw a modest growth of 1.2%, reaching ₹1,285.6 crore.
For the entire fiscal year 2025, profit surged impressively by 32.5% to ₹552 crore, up from ₹416.7 crore in the prior year. This profit growth occurred despite a 10.6% decline in annual revenue, which settled at ₹4,890.4 crore, driven by improved operational efficiency and lower raw material costs.
The IPO is a major event in the market, with its size increased to ₹3,600 crore from an initially proposed ₹3,000 crore. It is important for investors to note that this is purely an offer-for-sale (OFS) by the promoter, Tenneco Mauritius Holdings. This means the company itself will not receive any proceeds from the issue; all funds will go to the selling promoter.
Key Investor Information
Prospective investors should take note of the following critical details:
IPO Dates: The subscription window opens on Wednesday, October 18, and closes on Friday, October 20.
Price Band: The IPO price band has been fixed at ₹378 to ₹397 per equity share.
Lot Size: A single lot consists of 37 equity shares, with subsequent investments to be made in multiples thereof.
Grey Market Premium (GMP): The current GMP is ₹50, suggesting a potential listing price of around ₹447 per share, which would be a 12.59% gain over the upper end of the price band.
Allotment and Listing: The share allotment is tentatively scheduled to be finalized on Monday, October 23. Refunds will be initiated the following day, and shares will be credited to demat accounts of successful allottees. The listing on BSE and NSE is expected on Wednesday, October 25.
Reservation Quota: The public issue reserves 50% for QIBs, 15% for NIIs, and 35% for retail investors.
The merchant bankers managing the issue are JM Financial, Citigroup Global Markets India, Axis Capital, and HSBC Securities and Capital Markets (India). The registrar for the IPO is MUFG Intime India Pvt Ltd.
