The three-day issue will remain open until November 14. It is a pure sale offer worth Rs 3,600 crore, priced at Rs 378-Rs 397 per share. The company’s shares are expected to list on both the NSE and BSE on November 19.
Tenneco Clean Air India IPO Subscription Update
A total of 42% was subscribed to the Tenneco Clean Air India IPO on the first day of the offering.
The Retail Individual Investors (RIIs) segment saw a subscription of 36% against the shares reserved for them of Rs 3.33 crore, indicating moderate participation.
Non-institutional investors (NIIs) subscribed 1.11 times their allotment shares of Rs 1.42 crore, reflecting relatively stronger demand from this category.
Meanwhile, Qualified Institutional Buyers (QIBs) showed limited interest on Day 1 and placed bids for just 1% of the Rs 1.90 crore shares reserved for them.
Tenneco Clean Air India IPO GMP today
As of November 13, Tenneco Clean Air India’s IPO has a gray market premium (GMP) of around Rs 85, or 21.5% above the issue price of Rs 397, implying an estimated listing price of Rs 482.
The rising GMP from 16% previously indicates strong investor interest and positive sentiment ahead of the stock’s market debut. Note: GMP figures are unofficial and based on gray market trends; they may not accurately reflect the actual listing price.
IPO details of Tenneco Clean Air India
Tenneco Clean Air India’s IPO, valued at Rs 3,600 crore, is a 100% offer-for-sale (OFS) comprising 9.07 crore shares. The price band for the issue is between Rs 378 and Rs 397 per share.
The IPO will open for subscription on November 12, 2025 and close on November 14, 2025. The share allotment is expected to be completed on November 17, 2025, with the company’s shares likely to be listed on the BSE and NSE on November 19, 2025.
Tenneco Clean Air India – Company Overview
Tenneco Clean Air India is a leading player in the country’s auto components industry, specializing in the production and export of clean air, powertrains and suspension systems for both domestic and global markets. The company has strong market positions in key segments: 57% in commercial trucks, 68% in off-road vehicles, 19% in passenger cars and 52% in shock absorbers. Its customers include leading OEMs such as Maruti Suzuki, Hyundai, Tata Motors and Ashok Leyland.
In FY25, the company reported revenues of Rs 4,890 crore, EBITDA margin of 16.7%, PAT of Rs 553 crore and return on capital employed (ROCE) of nearly 57%, reflecting robust financial performance. Tenneco Clean Air India operates 12 automated manufacturing plants across India, with over 80% capacity utilization and 86% of materials sourced domestically. Operations are supported by two Indian R&D centres, integrated with Tenneco’s 39 global research facilities, enabling innovation and technology support for both local and international markets.
Should you subscribe?
According to Canara Bank Securities, the company’s valuations appear reasonable, with a forward price-to-earnings ratio of 29x and a forward price-to-earnings ratio of 12.7x, compared to peers trading at an average of 48x.
“Tenneco Clean Air India Ltd., backed by US-based Tenneco Group, has strong market positions and robust OEM partnerships. Despite dependence on its parent for IP, it maintains solid fundamentals and attractive margins. We recommend a Subscribe rating for both stock market gains and long-term growth potential,” the broker said in its note.
Industry experts believe that the IPO comes at an opportune time for the auto components sector. The Indian passenger car market continues to grow, supported by rising demand for SUVs, stricter emission standards and a growing shift towards cleaner and more efficient engine technologies.
According to CRISIL, domestic PV sales are expected to grow at a CAGR of 4-6% through FY2030, with rising penetration of CNG, hybrid and electric models creating new opportunities for component suppliers such as Tenneco. The company’s well-diversified revenue base across domestic and export markets, strong balance sheet and consistent cash flows could make it stand out from recent IPOs in the auto sector.
(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of the Economic Times)
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