New Delhi / Mumbai — Tenneco Clean Air India Ltd, a subsidiary of global automotive-component major Tenneco Inc., recently made a splash in the Indian markets with its much-anticipated IPO and listing.
Key Highlights
- IPO Size & Structure
- The IPO is valued at ₹3,600 crore, and is a 100% offer-for-sale (OFS) — meaning the company is not raising fresh capital. Moneycontrol+2Business Standard+2
- All shares being sold are by the promoter, Tenneco Mauritius Holdings.
- IPO Price Band & Lot Size
- The price band is ₹378 to ₹397 per share.
- Minimum lot size for retail investors is 37 shares, which means the lowest application (at upper band) is ~₹14,689. INDmoney
- Subscription Response
- The IPO saw very strong investor demand: subscription for QIB (Qualified Institutional Buyers) was extremely high, according to some reports. The Economic Times+1
- According to IndMoney, by the final day, total subscription was ~58.83×, with retail subscribed ~5.11× and QIB at 166.42×. INDmoney
- Financials & Business Strength
- For FY 2025, Tenneco Clean Air reported revenue of ₹4,890.4 crore and a profit after tax (PAT) of ₹553 crore. The Economic Times+1
- The company runs 12 manufacturing plants in India and sells emission control systems (like catalytic converters, mufflers, exhaust filters), along with suspension systems. 5paisa+1
- It has a strong market share in several segments: for example, in commercial trucks it has ~57% share, and in off-highway vehicles ~68%. The Economic Times
- Profit margins are solid; in Q1 (or the quarter ending June 2025), the company reported a 12% increase in profit over previous year. mint
- Risks & Concerns
- Because it’s a pure OFS, the IPO proceeds don’t go into the company for growth — investors are buying existing shares, not helping the company raise capital. INDmoney
- The company depends significantly on its parent (Tenneco Inc.) for technology, patented designs, and brand — which could pose risks if royalty terms change. The Economic Times
- A few brokerages have flagged valuation or governance concerns. The Economic Times
- Allotment & Listing
- Allotment was expected to be finalized by 17 November 2025. Business Standard+1
- The shares listed on 19 November 2025 on both the NSE and BSE. Groww+1
- On listing day, the stock opened at ₹505 on NSE, which is a 27% premium above the IPO price of ₹397. Groww+1
- On the BSE, the shares opened at ₹498, a 25.44% premium. NDTV Profit
- However, after the initial jump, the stock fell ~5% within the first hour of trading. The Economic Times
- Investor Sentiment and Outlook
- Many brokers (~12) see deep value in the IPO, citing stable financials, a strong business model, and good positioning in the auto component sector. The Economic Times
- Some analysts believe it is suited for long-term investors given its leadership in clean-emissions technology and strong OEM relationships. The Economic Times
- But because of the OFS nature, short-term gains will likely be driven by listing premium, not by capital deployment into business expansion.
🙋 People Also Ask
- What is Tenneco Clean Air India?
- It’s a subsidiary of Tenneco Inc that makes clean-air, powertrain, and suspension components. Business Standard+1
- When did Tenneco Clean Air IPO open?
- The IPO opened on 12 November 2025. mint
- What is the issue size of Tenneco Clean Air IPO?
- The IPO size is ₹3,600 crore. Moneycontrol+1
- Is the Tenneco Clean Air IPO a fresh issue or offer for sale?
- It is a 100% offer-for-sale (OFS). Moneycontrol
- What is the price band for the IPO?
- The share price band is ₹378 to ₹397. INDmoney
- How many shares are in one lot?
- One lot is 37 shares. INDmoney
- What is the minimum investment amount for retail investors?
- At the upper price of ₹397, the minimum is ₹14,689 for 37 shares. INDmoney
- Who are the lead managers for the IPO?
- The lead managers are JM Financial, Citigroup Global Markets India, Axis Capital, and HSBC Securities India. Business Standard+1
- When is the allotment date?
- The IPO allotment is expected on 17 November 2025. Business Standard
- When will the shares list?
- Shares are likely to list on 19 November 2025. Business Standard
- On which stock exchanges will it list?
- It will list on the NSE and BSE. Groww+1
- What is the business model of Tenneco Clean Air India?
- It designs, manufactures, and sells emission control systems (like catalytic converters, exhaust systems) and also suspension parts. 5paisa
- What are the major products of Tenneco Clean Air?
- Catalytic converters, mufflers, diesel particulate filters, exhaust pipes, shock absorbers, struts, etc. India Today
- How many manufacturing plants does Tenneco Clean Air India have?
- The company operates 12 plants across India. 5paisa
- What was Tenneco Clean Air’s revenue in FY 2025?
- ~₹4,890.4 crore. The Economic Times
- What was its profit (PAT) in FY 2025?
- ₹553 crore in PAT. mint
- What was its profit growth in the quarter ending June 2025?
- PAT rose by ~12% compared to the same quarter last year. mint
- Is Tenneco Clean Air India profitable?
- Yes, it is profitable with a strong PAT and good operational margins. mint+1
- Does the IPO raise fresh funds for the company?
- No, because it’s a pure OFS, the company doesn’t get IPO proceeds. Moneycontrol
- Who is selling shares in the IPO?
- The selling shareholder is Tenneco Mauritius Holdings (promoter). Business Standard
- What is the grey market premium (GMP) for the IPO?
- GMP has been reported around ₹61 (at some point). India Today
- What is the expected listing price based on GMP?
- Based on the upper price band and GMP, the listing could be around ₹458 (as estimated by some). India Today
- Did the IPO get oversubscribed?
- Yes, very strongly — especially among institutional investors. The Economic Times+1
- What was the QIB subscription rate for the IPO?
- Extremely high; IndMoney reports QIB was subscribed ~166.42×. INDmoney
- What is Tenneco Clean Air’s market share in commercial trucks?
- ~57% for commercial trucks (CT OEMs). The Economic Times
- What is its market share in off-highway vehicles?
- About 68% market share. The Economic Times
- What percentage of its revenue comes from top customers?
- Over 60% of revenue comes from its top ~5 customers, per analysis. The Economic Times
- What are the risks associated with the IPO?
- Key risks: dependence on parent for tech, royalty risk, and customer concentration. The Economic Times
- Is Tenneco Clean Air net debt positive or cash positive?
- According to analysts, it is net cash positive. The Economic Times
- Why are brokerages bullish on the IPO?
- Many see “deep value” due to the company’s leadership in clean air components and good margins. The Economic Times
- Should retail investors apply for this IPO?
- It may appeal to long-term investors, especially those optimistic about auto components and emission control. The Economic Times
- What is the promoter’s post-IPO holding?
- The promoter’s stake will reduce, but details vary; some say to ~74.8%. The Economic Times
- Who is the registrar for the IPO?
- The registrar is MUFG Intime India Pvt. Ltd. Business Standard
- What are the lead managers / book runners?
- JM Financial, Citigroup, Axis Capital, HSBC Securities India. Business Standard
- Is the company backed by a global parent?
- Yes, Tenneco Clean Air India is backed by Tenneco Inc., a global auto-component company. Business Standard
- Does Tenneco Clean Air India export its products?
- Yes, it serves both domestic OEMs and export markets. The Economic Times
- What kind of emission control systems does it manufacture?
- Catalytic converters, DIESEL particulate filters (DPFs), mufflers, exhaust pipes. India Today
- Does it make suspension systems too?
- Yes, suspension products like shock absorbers and struts. Reddit
- How many R&D centres does Tenneco Clean Air have?
- According to some sources, it has 2 R&D centres in India. The Economic Times
- Is the IPO considered attractive because of emission-norm tailwinds?
- Yes — as emission norms tighten, demand for clean-air components could rise. The Economic Times
- Will the IPO help the company expand capacity?
- No — since it’s an OFS, the company does not receive funds for expansion. Moneycontrol
- How is the parent-subsidiary relationship structured?
- Tenneco Mauritius Holdings (promoter) is selling 100% shares; the company is part of global Tenneco. Moneycontrol
- What is the return on capital employed (ROCE) for Tenneco Clean Air?
- According to some broker analysis, the ROCE is very high (some estimate ~50–56%). Reddit
- Is governance a concern for the IPO?
- Yes — some retail and institutional investors have raised red flags about corporate governance. Reddit
- Are there any fraud or whistleblower issues?
- According to some Reddit investors, there are serious governance concerns, including alleged fraud. Reddit
- What is the long-term growth potential of Tenneco Clean Air?
- With strong OEM relationships and exposure to emission control, it may benefit long-term from green mobility and regulation. The Economic Times
- How volatile was the stock after listing?
- After a strong listing pop, the share price slipped ~5% in the first hour of trade. The Economic Times
- Are there any brokerages recommending a “buy and hold”?
- Yes, a number of brokers see long-term value, especially for risk-tolerant investors. The Economic Times
- Will Tenneco Clean Air pay dividends soon?
- Dividend policy isn’t explicitly tied to the IPO, and as it’s a sale of existing shares, future dividends depend on business profits.
- What is the face value of the shares?
- The face value per share is ₹10. Newipo
- What peer companies operate in the same space?
- Peers could include other auto-component suppliers, especially in emission systems and suspension parts. (For example, companies like Timken India, Uno Minda, etc.) 5paisa
- How many shares (approx) are being sold in the IPO?
- About 9.07 crore shares are being offered, according to the prospectus. The Economic Times
- What percentage of the company will public shareholders own post-IPO?
- Since it’s an OFS, the public float will increase; promoter’s holding will reduce accordingly. The Economic Times
- Does Tenneco Clean Air pay royalties to its parent?
- Yes, it’s reported to pay royalty to Tenneco Inc. for technology / IP. The Economic Times
- Why would a company do a 100% OFS?
- To give liquidity to existing shareholders (promoter) without raising fresh capital for the company.
- What could be the downside if royalty costs increase?
- Increased royalty could hurt profit margins; dependence on parent could pose business risk. The Economic Times
- Is the auto component business cyclical?
- Yes, the auto-component business is cyclical and tied to vehicle production cycles.
- How is Tenneco Clean Air positioned in the global automotive market?
- It belongs to Tenneco Inc, a global Tier-1 supplier, giving it strong technological and scale support. India Today
- Does Tenneco Clean Air have exposure to EV (electric vehicle) market?
- There may be some exposure, especially in suspension / ride technologies, but much of its business is still tied to ICE (internal combustion engine) vehicles.
- What is the risk if auto OEM demand slows down?
- Lower demand from OEMs can directly impact revenue, given its high dependence on vehicle manufacturers.
- How to apply for the IPO?
- Investors can apply via their broker / trading platform, using the application form (via UPI / ASBA) as per standard IPO procedure.
- What is the basis of allotment date?
- The basis of allotment is expected on 17 November 2025. Business Standard
- Will there be lock-in period for Tenneco Clean Air shares after listing?
- Since it’s OFS by the promoter, often OFS shares may not have a lock-in like fresh issue, but check the RHP/allotment docs for lock-in details.
- How was the anchor investor response?
- Strong — anchor allocation was done at the upper price (₹397) for a substantial number of shares. India Today
- Is Tenneco Clean Air IPO good for short-term listing gains?
- Likely yes, because of high GMP and strong listing demand; but risk remains.
- What is the parental company’s role in Tenneco Clean Air India?
- The parent provides technology, brand, and technical backing; also receives royalty. The Economic Times
- How many OEMs (original equipment manufacturers) does Tenneco Clean Air supply to?
- Multiple OEMs; its clients include passenger vehicle OEMs, commercial truck OEMs, and off-highway vehicle OEMs. The Economic Times
- What portion of its business is after-market?
- It also sells aftermarket via its affiliate Motocare India. Business Standard
- Is Tenneco Clean Air’s IPO valuated reasonably?
- Many brokers believe the valuation is attractive given its profitability and market position. The Economic Times
- What are some brokerages’ target price for listing?
- While specific target prices vary, many expect a strong listing and medium to long-term value.
- How volatile is the IPO likely to be?
- Given the initial rapid price jump and early pullback, volatility is expected in the short term. The Economic Times
- Are there long-term macro tailwinds for Tenneco Clean Air?
- Yes — stricter emission norms, growth in vehicle production, and demand for cleaner automotive tech.
- What if the auto industry slows down due to EV adoption?
- That is a risk — business tied to ICE might face headwinds if EV adoption accelerates, unless they adapt.
- Does Tenneco Clean Air also work on industrial applications?
- Yes, apart from automotive, they also supply to industrial applications (e.g. generator sets). Business Standard
- What is the return on equity (ROE) for the company?
- According to some analysis, ROE is very high (analysts cite strong returns). Reddit
- Is there any geographical risk?
- Possibly, but its operations are primarily in India, and raw-material import risks exist.
- Who can apply for this IPO?
- Retail investors, non-institutional investors (NIIs), and qualified institutional buyers (QIBs). Moneycontrol
- Can NRIs apply for the IPO?
- Likely yes (subject to the IPO’s share-application rules and your broker), but please check the RHP / IPO prospectus.
- What happens after allotment?
- Shares will be credited to the demat account around allotment date, ahead of listing. Business Standard
- Is there a risk of high dilution?
- Since it’s an OFS, dilution risk to existing business is low (but public float increases).
- Will the IPO proceeds help in R&D?
- No, because it is OFS — the company is not raising new funds for R&D from this IPO.
- Is Tenneco Clean Air planning a follow-on public offer (FPO)?
- Not publicly stated (as per IPO documents); this IPO is just an OFS.
- What is Tenneco Clean Air’s debt level?
- According to some broker commentary, the company is net cash positive. The Economic Times
- How reliable are its financials?
- The company’s financials appear sound (profitability, cash), but some governance concerns exist per investors. Reddit
- What is the black-market IPO premium (GMP) source?
- GMP is derived from unofficial grey-market trading of IPO shares; it’s not guaranteed.
- Can GMP change before listing?
- Yes, GMP can fluctuate based on demand, news, and market sentiment.
- Should retail investors trust the GMP?
- GMP is an indicator, but not a guarantee — use it cautiously with other IPO fundamentals.
- What regulatory risks could the company face?
- Risks include changes in emission norms, regulation on automotive exports, and royalty or licensing changes with parent.
- What is the company’s competitive advantage?
- Technical expertise, established OEM relationships, and global backing from Tenneco Inc.
- How has Tenneco Inc (parent) performed globally?
- Tenneco Inc is a well-known global automotive supplier; its global performance supports the Indian subsidiary.
- Will Tenneco Clean Air pay tax in India?
- As a company in India, it pays corporate tax as per Indian laws; IPO does not change that.
- How is the valuation of Tenneco Clean Air compared to peers?
- Some brokerages believe the IPO is attractively valued compared to other auto-component companies, considering its profitability. The Economic Times
- What is the shareholding pattern post-IPO?
- Promoter’s stake will dilute; public float will increase, but check post-listing shareholding details once available.
- Does the company supply to electric vehicle (EV) OEMs?
- It may, especially for its suspension business, but the clean-air business is more ICE-centric currently.
- Can this IPO be suitable for long-term wealth creation?
- Many analysts think yes, especially for those who believe in auto components and clean mobility. The Economic Times
- What is the regulatory compliance risk for the company?
- Risks include emission regulation changes, safety standards, and licensing issues with the parent company.
- How is the automotive aftermarket business for Tenneco Clean Air?
- It has an aftermarket presence via Motocare India. Business Standard
- What is the maximum number of lots a retail investor can bid?
- It depends on the IPO’s application form and broker’s limits (for this IPO, some sources say retail can apply up to certain lots). Newipo
- Will the listing premium be sustainable?
- That depends on future earnings, business growth, and how much demand remains post-listing — not guaranteed.
- How to track Tenneco Clean Air share price after listing?
– You can track it on NSE / BSE, on your broker app, or via financial news portals.
✅ Investor Take-Home
- Short-term view: The IPO seems attractive for listing gains — it listed with ~27% premium but had early volatility.
- Long-term view: Tenneco Clean Air’s business is compelling — clean-air technology, strong OEM relationships, and profitability — but risk factors (governance, dependence on parent, no fresh capital from IPO) should be carefully weighed.
- Investor type fit: Likely more suitable for medium-to-long-term growth investors or those comfortable with IPO volatility, rather than purely short-term speculative traders.
