Here are 10 key things to know before you invest:
1) IPO size and structure
The Rs 3,600 crore issue is entirely an offer for sale (OFS) of 9.07 crore equity shares, meaning all proceeds will go to existing shareholders, primarily the company’s global promoters, and not towards new capital infusion.
2) Price band and lot size
The price band has been fixed at Rs 378–397 per share. Investors can bid for a minimum of 37 shares per lot, translating to an investment of Rs 14,689 at the upper end.
3) Grey Market Premium (GMP)
The GMP stands at around Rs 95 per share, or about 24% over the issue price, indicating potential listing around Rs 490–495, if sentiment holds steady.
4) Shareholding and promoters
The company is a subsidiary of Tenneco Inc, a US-based global automotive supplier. The promoters, Tenneco Mauritius Holdings, Federal-Mogul Investments BV, and Tenneco LLC, among others, currently hold 97.25% of the equity, which will reduce to 74.79% post-issue.
5) Business overview
Tenneco Clean Air India manufactures clean air and powertrain systems, including catalytic converters, diesel particulate filters (DPFs), mufflers, and exhaust pipes, catering to leading automotive OEMs. The company also designs shock absorbers, struts, and advanced suspension systems through its Advanced Ride Technologies division.
These products are critical for helping automakers comply with emission norms like Bharat Stage VI and meet the rising demand for performance and sustainability in the auto industry.
6) Manufacturing footprint
The company operates 12 manufacturing facilities across seven Indian states and one union territory, serving top domestic and international clients. Its manufacturing network supports localized production for global customers, ensuring cost efficiency and timely supply.
7) Financial performance
While FY25 saw a dip in revenue by 11% to Rs 4,931 crore, profit after tax rose 33% to Rs 553 crore, driven by improved operational efficiency. EBITDA stood at Rs 815 crore, with a margin of 16.7%, and PAT margin improved to 11.3%.
8) Market positioning and strengths
Tenneco Clean Air is one of India’s leading suppliers of emission control and powertrain solutions to top automobile OEMs. It benefits from its global R&D integration with parent Tenneco, which allows it to adapt cutting-edge global technologies for the Indian market at competitive costs.
9) Use of proceeds
Since the IPO is a pure OFS, the company will not receive any funds. The proceeds will go to the selling shareholders. However, listing on Indian exchanges will enhance brand visibility, provide liquidity, and create a public market for its equity.
10) Valuation
At the upper end of the price band, the company commands a market cap of around Rs 16,000 crore.