The IPO has drawn strong interest in the grey market, with its grey market premium (GMP) climbing to around 21.5%, up from 16% earlier. This surge reflects robust investor demand ahead of the listing, implying an estimated listing price of around Rs 482 per share, compared to the issue price of Rs 397 per share.
The three-day issue will remain open until November 14. It is a pure offer-for-sale 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
On the first day of bidding, the Tenneco Clean Air India IPO was 42% subscribed overall.
The Retail Individual Investors (RIIs) segment saw 36% subscription against the 3.33 crore shares reserved for them, indicating moderate participation.
Non-Institutional Investors (NIIs) subscribed to 1.11 times their allotted 1.42 crore shares, reflecting relatively stronger demand from this category.
Meanwhile, Qualified Institutional Buyers (QIBs) showed limited interest on Day 1, placing bids for only 1% of the 1.90 crore shares set aside for them.
Tenneco Clean Air India IPO GMP today
As of November 13, the Tenneco Clean Air India IPO is commanding a grey market premium (GMP) of around Rs 85, or 21.5% over its issue price of Rs 397, implying an estimated listing price of Rs 482.
The rising GMP from 16% earlier indicates strong investor interest and positive sentiment ahead of the stock’s market debut. Note: The GMP figures are unofficial and based on grey market trends; they may not accurately reflect the actual listing price.
Tenneco Clean Air India IPO details
The Tenneco Clean Air India IPO, valued at Rs 3,600 crore, is a 100% offer-for-sale (OFS) comprising 9.07 crore equity shares. The price band for the issue has been set 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 finalised on November 17, 2025, with the company’s stock likely to list on the BSE and NSE on November 19, 2025.
Tenneco Clean Air India – Business overview
Tenneco Clean Air India is a leading player in the country’s automotive components industry, specialising in the manufacture and export of clean air, powertrain, and suspension systems for both domestic and global markets. The company holds strong market positions across key segments: 57% in commercial trucks, 68% in off-highway vehicles, 19% in passenger vehicles, and 52% in shock absorbers. Its clients include prominent OEMs such as Maruti Suzuki, Hyundai, Tata Motors, and Ashok Leyland.
In FY25, the company reported revenue of Rs 4,890 crore, an EBITDA margin of 16.7%, PAT of Rs 553 crore, and a 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 utilisation and 86% of materials sourced domestically. Its operations are supported by two Indian R&D centres, integrated with Tenneco’s 39 global research facilities, enabling innovation and technological support for both local and international markets.
Should you subscribe?
According to Canara Bank Securities, the company’s valuations appear reasonable, with a P/E of 29x and P/B of 12.7x at the upper price band, compared with peers trading at 48x on average.
“Tenneco Clean Air India Ltd., backed by the US-based Tenneco Group, holds 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 listing gains and long-term growth potential,” the brokerage said in its note.
Industry experts believe the IPO comes at a favourable time for the auto components sector. The Indian passenger vehicle market continues to expand, supported by rising demand for SUVs, stricter emission norms, and a growing shift toward cleaner and more efficient engine technologies.
According to CRISIL, domestic PV sales are expected to grow at a 4-6% CAGR through FY2030, with rising penetration of CNG, hybrid, and electric models creating new opportunities for component suppliers like 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 among recent IPOs in the auto space.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)