Mumbai: The initial public offering (IPO) of Tenneco Clean Air India opened for subscription today, November 12, drawing attention from investors amid optimistic brokerage views. The company is offering shares in the price band of ₹378–₹397 per share, with a minimum bid of 37 shares and multiples thereof. The issue will close on Friday, November 14.
The ₹3,600 crore IPO is a pure offer for sale (OFS) of nearly 9.07 crore shares by the promoter, Tenneco Mauritius Holding. Consequently, the company will not receive any proceeds from the issue. Post-listing, Tenneco Clean Air India shares are expected to debut on the BSE and NSE on November 19.
About the Company
Founded in 2018 and headquartered in Chennai, Tenneco Clean Air India is a subsidiary of Tenneco Inc., the US-based global leader in clean air and powertrain technologies. The Indian arm operates within Tenneco’s Clean Air division, catering to emission-control solutions for both passenger and commercial vehicles.
Ahead of the IPO, the company raised ₹1,080 crore from 58 anchor investors, allotting 2.72 crore shares at ₹397 apiece. Global and domestic investors such as Nomura Funds, Fidelity, BlackRock, ADIA, Goldman Sachs, SBI MF, ICICI Prudential MF, HDFC AMC, Kotak AMC, and Axis MF participated in the anchor round.
For the quarter ended June 2025, the company reported a net profit of ₹168.09 crore on a revenue of ₹1,316.43 crore. For FY25, it had posted a net loss of ₹553.14 crore on revenue of ₹4,931.45 crore. At the upper end of the price band, the company’s market capitalization is estimated at over ₹16,000 crore.
In terms of allocation, 50% of the net offer is reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for retail investors. In the grey market, the stock is reportedly trading at a premium of ₹60–₹65 per share, suggesting potential listing gains of around 15–16%.
JM Financial, Citigroup Global Markets India, Axis Capital, and HSBC Securities are the book-running lead managers, while MUFG Intime India is the registrar to the issue.
What Analysts Say
Brokerages have largely expressed confidence in the IPO, with most assigning a ‘Subscribe’ rating, citing Tenneco’s strong parentage, market leadership in clean-air systems, and positive industry outlook.
ICICIDirect Research — Subscribe
ICICIDirect believes Tenneco is well-positioned to benefit from the ongoing shift towards cleaner and more efficient automotive technologies.
“With a solid presence in clean-air and ride performance systems, robust OEM partnerships, and healthy return ratios of around 30%, valuations at 29x P/E and 19x EV/EBITDA on FY25 estimates appear reasonable,” the brokerage said.
However, it cautioned investors about customer concentration risks and the transition toward electric mobility.
Swastika Investmart — Neutral
Swastika Investmart called Tenneco a fundamentally strong company trading at fair valuations but noted that the absence of fresh issue proceeds and a recent dip in revenues could limit short-term upside.
The firm maintained a ‘Neutral’ stance, despite acknowledging margin improvements to 16.7% in FY25.
SBI Securities — Subscribe
SBI Securities underscored Tenneco India’s leadership in clean-air, powertrain, and suspension systems, supported by over 5,000 patents and 7,500 trademarks from its global parent.
“With its readiness to ride India’s premiumisation wave and the government’s increasing focus on cleaner mobility, the company presents an attractive investment opportunity,” SBI Securities said.
Reliance Securities — Subscribe
Reliance Securities described Tenneco as a ‘future-ready player’ in the emission-control space.
“Its positioning at the intersection of stricter emission norms and growing industrial demand makes it a compelling long-term bet,” the brokerage noted.
Canara Bank Securities — Subscribe
Canara Bank Securities highlighted Tenneco’s dominant market share — 57% in commercial trucks, 68% in off-highway vehicles, and 52% in passenger vehicle shock absorbers.
It also emphasized the company’s healthy balance sheet, improving profitability, and attractive valuations versus peers.
“We recommend subscribing for both listing gains and long-term potential,” it said.
Aditya Birla Capital — Subscribe (Long Term)
Aditya Birla Capital expects Tenneco to benefit from stricter emission norms, premium product positioning, and localization initiatives.
“Its debt-free status, strong cash flows, and improving margins provide comfort. We recommend subscribing with a long-term view,” the brokerage stated.
BP Wealth — Subscribe (Long Term)
BP Wealth echoed this optimism, noting that the stock trades at a discount to sector peers on an FY25 P/E of 29x.
“We remain positive from a medium to long-term perspective,” it said.
SMIFS — Subscribe
SMIFS highlighted Tenneco’s scalability and operational leverage, citing its ability to expand without major capacity additions.
“The company is poised to outperform industry growth while maintaining its technological advantage,” it said.
Ventura Securities — Subscribe
According to Ventura Securities, Tenneco is well-positioned to tap new opportunities arising from tightening emission norms and EV-related transitions.
“Its strong R&D base and expanding export presence enhance growth visibility, though risks remain around customer dependence and EV adoption,” it noted.
Sushil Finance — Subscribe (Long Term)
Sushil Finance commended Tenneco’s tight working capital management and automation-led efficiency, describing it as a cost-effective, debt-free operation.
“Given its brand strength and cost discipline, we recommend investing with a medium to long-term horizon,” it said.
Lakshmishree Investments — Subscribe
Lakshmishree Investments termed Tenneco a premium, profitable auto component leader, benefiting from structural industry tailwinds.
“While cyclicality in the auto sector and EV risks persist, its deep OEM integration and technological leadership make it an attractive play,” the firm said.
Verdict
Overall, the sentiment around the Tenneco Clean Air India IPO is decidedly positive, with most brokerages recommending a ‘Subscribe’ rating — particularly for long-term investors.
Given its strong global parentage, leadership in clean-air technologies, and promising industry tailwinds, the issue offers reasonable valuations and moderate listing gain potential.
However, investors should remain mindful of sector cyclicality, customer concentration, and EV transition risks before making their investment decision.
