Tenneco Clean Air IPO Concludes with Overwhelming Investor Response
The initial public offering (IPO) of Tenneco Clean Air India Ltd concluded on a remarkably strong note, witnessing a massive surge in investor demand on its final day. After a relatively quiet start, the issue gained significant momentum, culminating in an overall subscription of 61.79 times the shares on offer. Investors placed bids for a staggering 392 crore shares against the 6.34 crore shares available for sale.
Breaking Down the Subscription Numbers
The demand was led by qualified institutional buyers (QIBs), who demonstrated exceptionally strong faith in the issue. The QIB portion was subscribed a massive 174.78 times, with bids received for 316 crore shares against the reserved 1.81 crore shares.
Non-institutional investors also showed robust enthusiasm, subscribing their allotted segment 42 times. In contrast, the retail investor segment displayed more cautious interest, with their quota being booked 5.37 times, as per the latest exchange data.
IPO Details and Key Dates
The ₹3,600 crore IPO was entirely an offer for sale (OFS) of 9.07 crore shares by existing promoters. The company had set a price band of ₹378 to ₹397 per share. For retail investors, the minimum investment required was ₹14,689 for a lot size of 37 shares.
The share allotment process is expected to be finalized on November 17. Successful applicants will see their shares credited to their demat accounts, with the official listing on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) scheduled for Friday, November 19.
Grey Market Premium and Listing Expectations
Adding to the positive sentiment, the grey market premium (GMP) for the Tenneco Clean Air IPO was reported at ₹76 per share. This unofficial market indicator suggests that the shares are likely to list at a premium to the issue price.
Considering the upper end of the price band at ₹397 and the current GMP, the stock is anticipated to debut at around ₹473, which would represent a healthy 19.14% gain for allottees. However, market analysts consistently advise that GMP is a speculative and early indicator and should not be the sole basis for an investment decision.
About Tenneco Clean Air India
Tenneco Clean Air India Ltd is a part of the US-based Tenneco Group, a global Tier I automotive component supplier. The company specializes in manufacturing and supplying highly engineered clean air, powertrain, and suspension solutions. Its primary clients are Indian original equipment manufacturers (OEMs), and it also serves export markets.
The company's products are critical for a wide range of vehicles, including:
- Passenger vehicles
- Commercial vehicles and trucks
- Off-highway vehicles
- Two-wheelers and three-wheelers
- Industrial applications like generator sets
Additionally, the company caters to the aftermarket segment through its group subsidiary, Motocare India Private Limited.
