#TennecoCleanAirIPO #AutoComponents #IPOIndia #AnchorInvestors #OfferForSale #CleanAirSolutions #Automotive #MakeInIndia #BSVI #EmissionNorms #StockMarket #MarketLeadership #InvestmentNews
Mumbai – Tenneco Clean Air India, the US-based Tenneco Group-backed automotive component manufacturer, has commenced the public subscription phase of its ₹3,600 crore Initial Public Offering (IPO) today, following a highly successful anchor book placement. The company, a dominant player in India’s emission control and ride performance systems market, raised ₹1,080 crore from a diverse mix of 58 anchor investors on Tuesday, November 11.
The IPO, which is structured entirely as an Offer-for-Sale (OFS) by the promoter, Tenneco Mauritius Holdings, will be open for public bidding from November 12 to November 14, with a price band set at ₹378 to ₹397 per share. As an OFS, the company itself will not receive any funds from the issue; the entire proceeds will go to the selling promoter.
Global and Domestic Giants Anchor the Issue
The anchor allocation was finalized at the upper price band of ₹397 per share, with the company allotting 2.72 crore equity shares. The strong interest from institutional investors serves as a significant vote of confidence in Tenneco Clean Air India’s market position and growth trajectory in the rapidly evolving Indian auto component sector.
Key Anchor Investor Participation:
- Domestic Mutual Funds (MFs): A substantial 54.15% of the total anchor portion (1.47 crore shares) was allocated to 17 domestic mutual funds. Marquee names include SBI Mutual Fund, ICICI Prudential MF, HDFC AMC, Kotak Mahindra AMC, Axis MF, Tata MF, and Motilal Oswal AMC, among others.
- Domestic Institutional Investors: Leading insurance companies like SBI Life Insurance, ICICI Prudential Life Insurance, HDFC Life Insurance, and Axis Max Life Insurance also secured allocations.
- Global Investors: The issue attracted major international capital, with participation from global heavyweights such as Nomura Funds, Fidelity, BlackRock, Norway’s Government Pension Fund Global, Abu Dhabi Investment Authority (ADIA), and Goldman Sachs.
This strong lineup of both domestic and global institutional investors underscores the perception of Tenneco Clean Air India as a high-quality player with resilient fundamentals.
Market Leadership in Emission and Suspension Systems
Tenneco Clean Air India is strategically positioned to capitalize on India’s increasingly stringent emission norms, such as Bharat Stage VI (BS-VI), and the growing demand for advanced ride technologies.
The company operates 12 manufacturing facilities across India and caters to a vast client base, having served 101 customers in the June 2025 quarter. Its impressive client roster includes leading OEMs such as Maruti Suzuki India, Tata Motors, Mahindra & Mahindra, Ashok Leyland, Bajaj Auto, Hyundai Motor India, and Skoda Auto Volkswagen India.
Dominant Market Share:
The company holds commanding market leadership in key segments:
- It is the largest supplier of clean air solutions to commercial trucks with an estimated 57% market share.
- It is the largest supplier of shock absorbers and struts to passenger vehicle manufacturers in India, holding an estimated 52% market share.
- Its core business is split between Clean Air & Powertrain Solutions (approximately 57.5% of FY25 revenue) and Advanced Ride Technologies (approximately 42.5%).
Strong Financial Profile and Valuation
Despite the absence of fresh capital infusion from the IPO due to the pure OFS structure, the company’s recent financial performance has been robust. For the financial year 2025, the company reported revenue of ₹4,890 crore and a Profit After Tax (PAT) of ₹553 crore. Crucially, its Return on Capital Employed (ROCE) stood at a highly efficient 56.8%, indicating strong operational performance and efficient asset utilization compared to industry peers.
At the upper price band, the IPO values the company at a market capitalization of over ₹16,000 crore. Analysts generally view the valuation (P/E ratio of approximately 29x on FY25 earnings) as reasonable, given its market leadership, strong margins (EBITDA margin of 16.7%), and access to the global technology and R&D network of the US-based Tenneco Group.
The issue is being managed by JM Financial, Citigroup Global Markets India, Axis Capital, and HSBC Securities and Capital Markets (India). Listing is tentatively scheduled for November 19, 2025.
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#TennecoCleanAirIPO #AutoComponents #IPOIndia #AnchorInvestors #OfferForSale #CleanAirSolutions #Automotive #MakeInIndia #BSVI #EmissionNorms #StockMarket #MarketLeadership #InvestmentNews
Source: Tenneco Clean PR
