Tenneco Clean Air IPO: Navigating Your Investment Path
The Initial Public Offering (IPO) market is bustling, offering investors a chance to partake in the growth stories of promising companies. One such opportunity is on the horizon with the Tenneco Clean Air India Ltd. IPO. This blog post aims to provide a thorough breakdown of this offering, helping you make an informed decision.
About the Issuer: Tenneco Clean Air India Ltd.
Tenneco Clean Air India Limited, established in 2018, is a crucial subsidiary of Tenneco Inc., a global leader in designing and manufacturing advanced clean air and powertrain products for the automotive industry. In India, the company is at the forefront of providing cutting-edge exhaust and after-treatment systems, essential for vehicle manufacturers to comply with stringent emission standards like Bharat Stage VI.
Their extensive product line includes catalytic converters, diesel particulate filters (DPFs), mufflers, and various exhaust components. With 12 manufacturing facilities across India, the company effectively supports major OEMs and Tier 1 customers. Tenneco Clean Air is committed to sustainability and innovation, leveraging global R&D to develop proprietary, modular, and customized solutions tailored for the Indian market.
Key Offerings & Strengths:
- **Clean Air & Powertrain Solutions:** Focuses on emission control and engine performance.
- **Advanced Ride Technologies:** Designs and manufactures shock absorbers, struts, and sophisticated suspension systems.
Competitive Advantages:
- Market leadership in highly engineered clean air, powertrain, and suspension solutions for Indian and global OEMs.
- A strategically diversified portfolio of proprietary products aligned with industry trends.
- Innovation-driven approach, utilizing Tenneco Group's global R&D for localized product development.
- Flexible and automated manufacturing capabilities across 12 strategically located plants, supported by a localized supply chain.
Decoding the Tenneco Clean Air IPO: Key Insights
This upcoming IPO is a significant event for investors looking into the automotive components sector. Here’s a snapshot of the core details:
| Detail | Information |
|---|---|
| **Issue Type** | Book Building Issue |
| **Offer Type** | Entirely an Offer for Sale (OFS) |
| **Total Issue Size** | ₹3,600.00 Crores |
| **Number of Shares** | 9,06,80,101 equity shares |
| **Face Value** | ₹10 per share |
| **Price Band** | ₹378.00 to ₹397.00 per share |
| **Listing At** | BSE, NSE |
Your IPO Journey: Key Dates at a Glance
Timing is crucial in the IPO process. Mark these important dates for the Tenneco Clean Air IPO:
Investment Tiers: Understanding Lot Sizes
The IPO offers different investment categories, each with specific lot sizes to accommodate various investor profiles:
| Application Category | Lots (Min) | Shares (Min) | Amount (Min) | Lots (Max) | Shares (Max) | Amount (Max) |
|---|---|---|---|---|---|---|
| **Retail Individual Investors (RII)** | 1 | 37 | ₹14,689 | 13 | 481 | ₹1,90,957 |
| **Small HNI (sNII)** | 14 | 518 | ₹2,05,646 | 68 | 2,516 | ₹9,98,852 |
| **Big HNI (bNII)** | 69 | 2,553 | ₹10,13,541 | - | - | - |
(Amounts based on the upper price band of ₹397 per share)
IPO Allocation Structure
The shares in the IPO are reserved for different investor categories as follows:
- **Qualified Institutional Buyers (QIB):** Not more than 50% of the Offer
- **Retail Individual Investors (RII):** Not less than 35% of the Offer
- **Non-Institutional Investors (NII):** Not less than 15% of the Offer
Promoter Stakes: A Glimpse into Ownership
The promoters of Tenneco Clean Air India Limited are Tenneco Mauritius Holdings Limited, Tenneco (Mauritius) Limited, Federal-Mogul Investments B.V., Federal-Mogul Pty Ltd, and Tenneco LLC. Their shareholding pattern indicates confidence in the company's future:
| Category | Promoter Holding |
|---|---|
| **Pre-Issue** | 97.25% |
| **Post-Issue** | 74.79% |
Financial Health Check: A Deep Dive
Analyzing a company's financial performance is paramount before investing. Here’s how Tenneco Clean Air India Ltd. has performed:
| Period Ended (₹ Crore) | 30 Jun 2025 (Q1 FY26) | 31 Mar 2025 (FY25) | 31 Mar 2024 (FY24) | 31 Mar 2023 (FY23) |
|---|---|---|---|---|
| **Assets** | 2,918.77 | 2,831.58 | 2,136.26 | 2,429.65 |
| **Total Income** | 1,316.43 | 4,931.45 | 5,537.39 | 4,886.96 |
| **Profit After Tax (PAT)** | 168.09 | 553.14 | 416.79 | 381.04 |
| **EBITDA** | 228.88 | 815.24 | 612.09 | 570.63 |
| **Net Worth** | 1,250.38 | 1,255.09 | 1,116.59 | 1,378.82 |
| **Total Borrowing** | 0.86 | - | - | - |
The company demonstrated strong profit growth with PAT rising by 33% between FY24 and FY25, despite a modest decrease in revenue in the same period. The Q1 FY26 numbers also indicate continued profitability.
Performance Metrics: What the Numbers Say
Key financial ratios offer deeper insights into the company's efficiency and profitability (as of March 31, 2025):
| Metric | Value |
|---|---|
| **Return on Equity (ROE)** | 42.65% |
| **Return on Capital Employed (ROCE)** | 56.78% |
| **Return on Net Worth (RoNW)** | 46.65% |
| **PAT Margin** | 11.31% |
| **EBITDA Margin** | 16.67% |
| **Price to Book Value (P/BV)** | 12.77 |
| **Market Capitalization** | ₹16,023.09 Cr. |
Valuation Highlights:
| Metric | Pre IPO | Post IPO |
|---|---|---|
| **EPS (Rs)** | 13.71 | 16.66 |
| **P/E (x)** | 28.97 | 23.83 |
(Pre-IPO EPS based on FY25 earnings and pre-issue shareholding; Post-IPO EPS based on annualized Q1 FY26 earnings and post-issue shareholding)
SWOT Analysis: A Holistic View
Strengths:
- **Market Leadership:** Strong position in critical automotive components like clean air and suspension solutions.
- **Technological Edge:** Leverages global R&D from Tenneco Group for advanced and customized products.
- **Diversified Portfolio:** Caters to both light and commercial vehicles with proprietary solutions.
- **Robust Manufacturing:** Strategically located, flexible, and automated facilities across India.
- **Strong Financials:** Consistent profitability with healthy PAT growth.
Weaknesses:
- **Offer for Sale (OFS):** The entire issue is an OFS, meaning no fresh capital directly flows into the company for business expansion.
- **Revenue Decline:** A slight decrease in total income from FY24 to FY25, which warrants observation.
- **Reliance on Automotive Sector:** Performance is closely tied to the cyclical nature and regulatory changes within the automotive industry.
Opportunities:
- **Stricter Emission Norms:** Growing demand for advanced emission control technologies (e.g., Bharat Stage VI and beyond).
- **OEM Growth:** Expansion of the Indian automotive sector and increased vehicle production.
- **Export Potential:** Opportunity to expand global footprint beyond supporting Indian OEMs.
- **Electric Vehicle (EV) Transition:** While current products are ICE-focused, the company's R&D capabilities might allow adaptation or diversification into EV components over time.
Threats:
- **Intense Competition:** Presence of both domestic and international players in the automotive components market.
- **Technological Disruption:** Rapid advancements in automotive technology, especially in alternative propulsion systems, could impact existing product lines.
- **Economic Slowdown:** A downturn in the broader economy could impact vehicle sales and, consequently, demand for components.
- **Regulatory Changes:** Sudden shifts in government policies or trade agreements could affect operations and profitability.
Investment Objectives of the IPO
Since the Tenneco Clean Air IPO is entirely an Offer for Sale, the primary objective is to allow the existing shareholders (promoters) to divest a portion of their stake. The company itself will not receive any proceeds from this issue. This provides liquidity to the selling shareholders and can help in broad-basing the public shareholding in the company, which often contributes to better corporate governance and market perception.
Expert Perspectives & Outlook
Consensus View:
Market observers note that Tenneco Clean Air India Ltd., a subsidiary of the renowned Tenneco group, benefits from a strong legacy and leadership in the clean air and advanced automotive components sectors. The company has demonstrated positive growth in its financial performance. While the issue appears to be priced at a reasonable valuation based on its latest financials, the long-term prospects seem bright given its strong market position and innovative approach. Investors with a medium to long-term horizon may consider this offering.
Applying for the Tenneco Clean Air IPO
Interested investors can typically apply for IPOs through various online platforms offered by stockbrokers. The process generally involves:
- **Accessing the IPO Section:** Log in to your stockbroker's trading platform (e.g., website or mobile app) and navigate to the IPO application section.
- **Selecting the IPO:** Find "Tenneco Clean Air IPO" from the list of current offerings.
- **Entering Bid Details:** Specify your UPI ID (for ASBA through UPI) or net banking details, the number of lots you wish to apply for, and your bid price (either the cut-off price or within the price band).
- **Submitting Application:** Confirm and submit your IPO application.
- **Approving Mandate:** For UPI applications, approve the payment mandate via your UPI app (e.g., BHIM, Google Pay, PhonePe, or bank's UPI app) before the cutoff time.
Essential Contacts & Information
Registrar Information:
The registrar for the IPO plays a crucial role in managing the application and allotment process. For Tenneco Clean Air IPO, the registrar is:
- **MUFG Intime India Pvt.Ltd.**
- **Email:** tennecocleanair.ipo@in.mpms.mufg.com
Guiding the Issue: Lead Managers:
The IPO is managed by a consortium of experienced lead managers:
- JM Financial Ltd.
- Citigroup Global Markets India Pvt.Ltd.
- HSBC Securities & Capital Markets (India) Pvt.Ltd.
- Axial Capital Pvt.Ltd.
Company Contact Details:
For any direct inquiries to the company, here are the contact details:
- **Address:** RNS2, Nissan Supplier Park SIPCOT Industrial Park, Oragadam Industrial Corridor Sriperumbudur Taluk, Kancheepuram, Tamil Nadu, 602105
- **Email:** TennecoIndiaInvestors@tenneco.com
- **Website:** http://www.tennecoindia.com/
Frequently Asked Questions (FAQs)
Here are some common questions prospective investors might have:
- **What is an Offer for Sale (OFS)?** In an OFS, existing shareholders sell their shares to the public. The company does not receive any proceeds from the issue.
- **How can I check my IPO allotment status?** Once the allotment is finalized, you can check your status on the registrar's website or your broker's platform.
- **What is the cut-off time for UPI mandate confirmation?** Typically 5 PM on the closing day of the IPO subscription (Nov 14, 2025).
- **When will the shares be credited to my Demat account?** Tentatively, by Tuesday, November 18, 2025.
Conclusion: Weighing Your Investment
The Tenneco Clean Air India Ltd. IPO presents an intriguing opportunity in the dynamic automotive components sector. With its strong parentage, market leadership in critical segments, and promising financial growth, the company appears well-positioned for the future. While the entire issue is an Offer for Sale, the underlying business fundamentals and industry trends, particularly the increasing focus on emission control, offer a compelling narrative.
As with any investment, it's crucial to conduct your own due diligence, consider your personal financial goals, and consult with a financial advisor. Understanding the company's strengths, weaknesses, opportunities, and threats, alongside its valuation, will equip you to make a well-informed decision for your portfolio.