Tenneco Clean Air India, a prominent manufacturer of automotive components, has launched its Initial Public Offering (IPO) today, November 12, for public subscription. The IPO, valued at ₹3600 crore, marks a significant event in the Indian capital markets. Demonstrating strong investor confidence and market positioning, the company successfully garnered ₹1080. Crore from 58 anchor investors a day before the public issue opened. This three-day subscription window will conclude on November 14, providing investors with an opportunity to participate in this offering.
Strong Anchor Investor Participation
Tenneco Clean Air India finalized the allocation of 2. 72 crore equity shares to anchor investors at the upper price band on Tuesday. This allocation saw strong participation from both domestic and global institutional investors. A substantial portion, 1. 47 crore equity shares, was allocated to 17 domestic mutual funds. These included leading names such as SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC AMC, Kotak Mahindra AMC, Axis Mutual Fund, Tata Mutual Fund, Motilal Oswal AMC, Invesco, Quant Mutual Fund, Edelweiss, and Sundaram Mutual Fund. Their involvement underscores the confidence in the company's financial stability and future growth prospects.
Beyond mutual funds, other significant domestic institutional investors like SBI Life Insurance, ICICI Prudential Life Insurance, HDFC Life Insurance, and Axis Max Life Insurance also participated actively in the anchor book. On top of that, the anchor book attracted a diverse group of global investors, including Nomura Funds, Fidelity, BlackRock, Government Pension Fund Global, Abu Dhabi Investment Authority, and Goldman Sachs. The participation of such a wide array of prestigious investors highlights the company's. Global appeal and solid business model, providing a strong start to the IPO.
IPO Structure and Key Details
The Tenneco Clean Air India IPO is valued at ₹3600 crore, with a price band set between ₹378 and ₹397 per equity share. This offering is structured purely as an Offer For Sale (OFS), meaning that the promoter, Tenneco Mauritius Holdings, will be selling 9. 07 crore shares. No new shares will be issued by the company, implying that the proceeds from the IPO will go directly to the selling promoter rather than to the company itself. Following the closure of the issue, the finalization of share allotment is scheduled for November 17, with the shares expected to be listed on both the BSE and NSE on November 19. In the grey market, Tenneco Clean Air's shares are reportedly trading at a premium of ₹61, or 15, while 37%, over the upper price band of ₹397, indicating strong investor demand and positive market sentiment.
Market Leadership and Product Offerings
Tenneco Clean Air India holds a significant position in the Indian automotive components industry. The company asserts its status as the largest supplier of clean air solutions for commercial trucks in India. On top of that, it claims to be the largest supplier of shock absorbers and struts for passenger vehicle manufacturers, boasting a market share exceeding 50 percent, while this dominant market position provides the company with a substantial competitive edge. Operating with 12 manufacturing facilities, Tenneco Clean Air provides comprehensive clean air, powertrain,. And suspension solutions to automobile companies, showcasing its extensive product portfolio and operational capabilities.
Extensive Client Base and Operations
Financially, Tenneco Clean Air India has presented a mixed performance. For the fiscal year 2025, the company reported a revenue of ₹4,931. 45 crore, an 11% decrease from ₹5,537. 39 crore in the preceding fiscal year, while despite the dip in revenue, the company's net profit witnessed a solid 33% increase, rising to ₹553. 14 crore from ₹416, while 79 crore in FY2024. This indicates effective cost management and operational efficiencies contributing to improved profitability. For the April-June 2025 quarter, Tenneco Clean Air India recorded a revenue of ₹1,316. 43 crore and a net profit of ₹168. 09 crore, signaling a stable start to the current fiscal year.
The company boasts a broad and diversified client base. In the June 2025 quarter alone, Tenneco Clean Air served 101 clients, including major automotive players such as Ashok Leyland, Bajaj Auto, Cummins India, Daimler India Commercial Vehicle, Honda Motorcycle & Scooter India, Hyundai Motor India, John Deere India, Mahindra & Mahindra, Maruti Suzuki India, Royal Enfield, Skoda Auto Volkswagen India, Tata Motors, and VE Commercial Vehicles. This extensive list of clients covers key automobile manufacturers in India, underscoring Tenneco Clean Air's deep market penetration and reliability within the industry, while its 12 manufacturing facilities strategically located across the country enable it to efficiently cater to the diverse needs of its vast customer base.
Market Outlook and Competitors
The IPO allocates 50 percent of the issue to Qualified Institutional Buyers (QIBs), 35 percent to retail investors, and 15 percent to Non-Institutional Investors (NIIs), ensuring broad participation across investor categories. Reputable financial institutions such as JM Financial, Citigroup Global Markets India, Axis Capital, and HSBC Securities & Capital Markets (India) are acting as merchant bankers for Tenneco Clean Air India's IPO. The company's listed competitors in India include Bosch, Timken India, SKF India, ZF Commercial Vehicle Control System India,. Sharda Motor Industries, Gabriel India, Uno Minda, and Sona BLW Precision Forgings, indicating a competitive yet growing market segment.
Investment Opportunity
The Tenneco Clean Air India IPO presents an opportunity for investors to engage with a well-established and market-leading automotive component supplier. The company's strong market share, diversified client portfolio, and demonstrated ability to improve profitability make it an attractive proposition. However, it's crucial for potential investors to remember that this is an Offer For Sale, meaning the company itself won't receive any direct capital from the IPO proceeds. Investors should carefully evaluate the company's financial performance, market position, and future prospects before making an investment decision.
