Tenneco Clean IPO: Check IPO Allotment Status | Live GMP | Listing views

Introduction

The Indian primary market continues its strong momentum, and the next big name gearing up for listing is Tenneco Clean Air India Ltd. Backed by global automotive giant Tenneco Inc., this company is set to bring its Rs.3,600 crore initial public offering (IPO) to investors. With its focus on advanced emission control and ride performance technologies, Tenneco Clean Air India aims to capitalize on the growing demand for clean mobility solutions in India and abroad.

Let’s dive deep into the company’s business model, financial performance, IPO structure, and whether it deserves a spot in your portfolio.

About Tenneco Clean Air India Ltd

Tenneco Clean Air India Ltd is one of India’s leading automotive component manufacturers, specializing in exhaust and after-treatment systems for vehicles. The company plays a key role in helping automakers meet stringent emission standards through products like catalytic converters, diesel particulate filters (DPFs), mufflers, and exhaust assemblies.

It also operates in the Advanced Ride Performance (ARP) segment, offering shock absorbers, struts, and suspension components. This dual focus on clean air and ride performance technologies gives the company a well-balanced and diversified business profile.

The firm is a subsidiary of Tenneco Inc., a globally recognized U.S.-based automotive supplier with operations in over 20 countries. In India, Tenneco Clean Air operates 12 manufacturing facilities across 7 states and 1 Union Territory, catering to both domestic and international original equipment manufacturers (OEMs).

Tenneco Clean Air India IPO Details

Check you IPO Allotment Status: Click Here

Since this IPO is a pure Offer for Sale, the company will not receive any proceeds from the issue. Instead, existing shareholders — primarily Tenneco Inc. and other promoters — will be offloading part of their stake to unlock value and improve the company’s public profile.

IPO Objectives and Proceeds Utilization

Even though the IPO does not involve fresh capital infusion, it serves several strategic purposes:

1. Enhancing brand visibility: Listing on Indian exchanges will strengthen Tenneco’s brand recall among OEMs and suppliers.
2. Providing liquidity to existing shareholders: The parent company and investors will partially monetize their holdings.
3. Creating a public market for shares: Enables easier capital access for potential future expansion or acquisitions.
4. Improving corporate governance and transparency: Post-listing compliance with SEBI norms will enhance investor confidence.

While there are no direct proceeds for business expansion, the long-term benefit lies in improved visibility, credibility, and valuation of the Indian operations.

Company Financials

Tenneco Clean Air India has shown consistent profitability and operational efficiency despite fluctuations in revenue. Here’s a quick snapshot:

Key Takeaways:

• Revenue declined 11% YoY, indicating slower demand or supply chain challenges.
• Profit surged 33% YoY, showing improved margins and cost efficiency.
• Debt levels are negligible, making it a financially strong and stable company.
• The improvement in profitability despite lower revenue reflects strong cost control and a favorable product mix.

Valuation and Peer Comparison

At the upper price band of Rs.397, Tenneco Clean Air India’s P/E ratio stands at approximately 46.6x based on FY25 EPS of Rs.13.68. The valuation places it among the premium players in the auto component sector.

Peer Comparison:

While the valuation seems slightly stretched compared to SKF India, it remains competitive considering its strong global parentage and higher return on net worth.

Industry Overview

The Indian automotive component industry is projected to grow steadily, driven by:

• Increasing vehicle production and exports.
• Rising demand for BS-VI and emission-compliant technologies.
• Growth in aftermarket and replacement segments.
• Focus on localization and reduced import dependency.

However, the sector is also undergoing rapid transformation due to the rise of electric vehicles (EVs). While EVs reduce demand for traditional exhaust systems, components like ride performance and suspension parts continue to be relevant.

Key Strengths

1. Strong Global Parentage: Backed by Tenneco Inc., the company benefits from global R&D, technology sharing, and supply chain expertise.
2. Diverse Product Portfolio: Operates in both emission and ride technology segments, reducing dependence on any single product line.
3. Robust Manufacturing Base: 12 strategically located plants ensure efficient supply and scalability.
4. Debt-Free Balance Sheet: Minimal borrowings enhance financial flexibility.
5. Established OEM Relationships: Long-standing partnerships with leading vehicle manufacturers ensure steady demand.

Risks and Challenges

1. Revenue Decline: The recent drop in revenue despite sector growth raises questions about market share or demand sustainability.
2. High Valuation: Trading at 46x earnings leaves limited margin for error if growth slows.
3. Technology Transition Risk: EV adoption could impact demand for traditional emission products in the long term.
4. Cyclical Industry: Auto demand is highly sensitive to economic cycles, fuel prices, and government policies.
5. No Fresh Issue: As it’s a full OFS, there’s no direct capital infusion for future expansion.

Grey Market Premium (GMP)

As of early November 2025, the grey market premium (GMP) for Tenneco Clean Air India IPO is hovering around Rs.90–Rs.100 per share, suggesting a possible listing gain of 20–25% over the issue price. However, investors should note that GMP is speculative and fluctuates based on demand sentiment, not fundamentals.

Should You Apply for Tenneco Clean Air India IPO?

Tenneco Clean Air India offers a mix of strong fundamentals, global backing, and healthy profitability. However, investors should weigh the following:

Apply if:

• You seek short-term listing gains.
• You believe in the long-term growth of the Indian auto components sector.
• You value strong governance and a debt-free balance sheet.

Avoid or Apply Cautiously if:

• You are concerned about high valuations and lack of fresh capital infusion.
• You expect rapid EV adoption to impact future product demand.
• You prefer companies with strong revenue growth trajectories.

For conservative investors, this IPO may be best suited for short- to medium-term gains rather than long-term compounding.

Conclusion

The Tenneco Clean Air India IPO brings a reputed global brand to the Indian stock markets. With sound profitability, minimal debt, and a leadership position in emission and ride technologies, the company is well-positioned for growth. However, the premium valuation and cyclical nature of the industry demand a balanced approach.

If the listing maintains the current grey market enthusiasm, investors could benefit from decent short-term gains. But for long-term holding, it’s prudent to wait for sustained revenue growth and clarity on EV strategy.

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