Tenneco Clean Air India, a subsidiary of US-based Tenneco Group, is set to launch its initial public offering (IPO) on November 12, 2025, aiming to raise ₹3,600 crore from the primary market. The IPO is entirely an offer for sale (OFS) of 9.07 crore shares by promoter Tenneco Mauritius Holdings. The price band is fixed between ₹378 and ₹397 per share. At the upper end of the price band, the company's valuation stands at around ₹16,000 crore. The IPO window will be open from November 12 to November 14, with a tentative listing date on BSE and NSE of November 19.
Tenneco Clean Air India specializes in manufacturing and supplying advanced, technology-driven clean air, powertrain, and suspension solutions. The company caters to a diverse customer base across various vehicle segments, including passenger vehicles, commercial vehicles, and industrial applications. Tenneco Group, the parent company, reported a revenue of $16,777 million for the fiscal year ended December 31, 2024. Established in India in 1979, Tenneco Clean Air India has a long-standing presence in the Indian automotive market.
The grey market premium (GMP) for the Tenneco Clean Air India IPO stood at ₹65 as of 11:00 a.m. on November 11, 2025, indicating a potential listing price of ₹462 per share, a premium of 16.37% compared to the upper limit of the IPO price band. However, it is important to note that GMP is speculative and does not represent official data.
The company reported an 11.8% year-on-year (YoY) increase in profit after tax (PAT) at ₹168.09 crore in Q1FY26, compared to ₹150.31 crore in Q1FY25. Revenue from operations rose 1.17% YoY to ₹1,285.62 crore in Q1FY26 from ₹12,70.77 crore in Q1FY25. For the last three fiscals, the company has posted an average EPS of ₹11.07 and an average RoNW of 39.25%. The company has demonstrated growth in its top and bottom lines for the reported periods. The company has reported PAT margins (on revenue from operations basis) of 7.89% (FY23), 7.62% (FY24), 11.31% (FY25), 13.07% (Q1-FY26), and RoCE margins of 33.51%, 45.40%, 56.78%, 16.29%, respectively for referred periods.
Tenneco Clean Air India faces certain risks, including heavy dependence on a few customers for revenue generation, close ties to emission standards and regulatory policy, high reliance on Indian PV and CV OEMs, the potential shift towards EVs reducing long-term demand, and disruption in the raw material supply chain. The top 10 customers contribute to 80% of the company's total sales.
JM Financial is the book-running lead manager, and MUFG Intime India is the registrar for the IPO. Retail investors must bid for a single lot size of 37 shares, requiring an investment of ₹14,689. The IPO share allotment status is expected to be finalized on November 17. The company will transfer shares to the demat accounts of successful bidders on November 18, and refunds to non-allottees will also be processed on the same day.
Tenneco Clean Air India operates in a competitive landscape with peers like Bosch Ltd., Timken India, SKF India, ZF Commercial, Sharda Motor, Gabriel India, Uno Minda, and Sona BLW. These companies are currently trading at a P/E of 49.0, 49.9, 19.6, 50.4, 20.1, 82.5, 64.9, and 48.7 (as of November 07, 2025).
