Tenneco Clean Air India Ltd, a subsidiary of the global automotive giant Tenneco Inc., is coming up with its Initial Public Offering (IPO) that opens on November 12, 2025 and closes on November 14, 2025. The issue, entirely an Offer for Sale (OFS), aims to raise ₹3,600 crore. With a price band of ₹378 to ₹397 per share, the company will be listed on both BSE and NSE. In this article, we provide a detailed Tenneco Clean Air IPO Review, covering the company’s business model, financials, competitive strengths, risks, and whether investors should subscribe or avoid this IPO.
About Tenneco Clean Air India Ltd
Incorporated in 2018, Tenneco Clean Air India Ltd designs and manufactures advanced emission control systems, powertrain components, and suspension solutions for both passenger and commercial vehicles. The company caters to leading Original Equipment Manufacturers (OEMs) in India and abroad, helping them comply with stringent emission norms such as Bharat Stage VI.
Tenneco operates under the global umbrella of Tenneco Inc. (USA), a major player in clean air and powertrain technologies with annual revenue of over USD 16.7 billion (FY 2024). In India, Tenneco Clean Air operates 12 manufacturing facilities across seven states and one union territory, supported by two R&D centers.
Key product segments include:
- Clean Air Solutions – Catalytic converters, Diesel Particulate Filters (DPF), and exhaust systems.
- Powertrain Solutions – Bearings, sealing systems, and pistons.
- Advanced Ride Technology – Shock absorbers, struts, and advanced suspension systems.
Competitive Strengths
- Market Leadership
Tenneco Clean Air India holds a 57% market share in commercial truck OEMs and 68% in off-highway OEMs (excluding tractors). It is also among the top four suppliers to passenger vehicle OEMs in India. - Technological Advantage
The company leverages Tenneco Group’s global R&D to develop proprietary and modular products suitable for Indian market conditions. - Strong OEM Relationships
The company has long-term partnerships with leading OEMs, including all top seven PV OEMs and all top five commercial truck OEMs in India. - Diverse Manufacturing Base
Tenneco’s 12 plants ensure flexibility, localization, and supply chain efficiency, enabling it to serve both domestic and export markets effectively. - Experienced Leadership Team
The management is led by CEO Arvind Chandrasekharan and CFO Mahender Chhabra, with a combined industry experience of over 45 years. Tenneco LLC’s ownership by Apollo Global Management adds strong institutional backing.
Tenneco Clean Air IPO Issue Details
| Particular | Details |
|---|---|
| IPO Opening Date | November 12, 2025 |
| IPO Closing Date | November 14, 2025 |
| Listing Date | November 19, 2025 (Tentative) |
| Issue Type | Book Building (OFS) |
| Face Value | ₹10 per share |
| Price Band | ₹378 to ₹397 per share |
| Total Issue Size | ₹3,600 crore |
| Lot Size | 37 shares |
| Minimum Investment (Retail) | ₹14,689 |
| BRLMs | JM Financial, Axis Capital, HSBC Securities |
| Registrar | MUFG Intime India Pvt. Ltd. |
Company Financials
| Particulars (₹ Crore) | FY23 | FY24 | FY25 | Q1 FY26 |
|---|---|---|---|---|
| Revenue | 4,887 | 5,537 | 4,931 | 1,316 |
| EBITDA | 571 | 612 | 815 | 229 |
| PAT | 381 | 417 | 553 | 168 |
| EBITDA Margin | 11.7% | 11.1% | 16.7% | 17.8% |
| PAT Margin | 7.8% | 7.5% | 11.3% | 13.1% |
| ROE | 42.6% | 46.6% | 42.6% | – |
Observation: Despite a revenue dip of 11% in FY25, the company improved profitability significantly. PAT rose 33% YoY, supported by operational efficiency and better product mix.
Objects of the IPO
As the IPO is entirely an Offer for Sale, no proceeds will go to the company. All funds will be received by the selling shareholder, Tenneco Mauritius Holdings Ltd. Hence, investors should not expect debt reduction or capex benefits from IPO proceeds.
P/E Ratio Comparison with Peers
| Company | P/E (x) | Remarks |
|---|---|---|
| Tenneco Clean Air India Ltd | 23.83 (Post-IPO) | Fairly Valued |
| Motherson Sumi Wiring | 52.4 | Highest in Industry |
| Bosch Ltd | 29.8 | Premium Valuation |
| Endurance Technologies | 24.7 | Comparable Peer |
| Industry Average | ~30x |
Inference: At a post-issue P/E of 23.8x, Tenneco Clean Air is priced below industry average, indicating reasonable valuation.
Reasons to Invest in Tenneco Clean Air IPO
1. Leadership in Emission and Suspension Solutions
Tenneco is India’s market leader across multiple vehicle categories, positioning it well for upcoming emission regulations (BS7, CAFE norms).
2. Strong Financial Track Record
Consistent improvement in EBITDA and PAT margins demonstrates strong operational efficiency and pricing power.
3. Rising Demand from OEMs
OEMs are expanding production post-pandemic. With stricter emission norms, demand for Tenneco’s clean air products is expected to surge.
4. R&D-Driven Edge
Access to Tenneco’s global research network enables cutting-edge innovation and localization at Indian price points.
5. Attractive Valuation
At 23.8x earnings, the IPO is attractively priced compared to peers, making it appealing for medium to long-term investors.
Risk Factors
1. Complete OFS Issue
The IPO proceeds will not benefit the company directly, which limits growth capital infusion.
2. Dependency on Parent Group
The company relies heavily on Tenneco Group for technical know-how, licenses, and raw materials. Any disruption could impact operations.
3. Automotive Industry Cyclicality
Tenneco’s performance is tied to the automobile industry, which is cyclical and sensitive to economic downturns.
4. Global Tariff and Trade Risks
Changes in international trade policies (like U.S. tariff hikes) could affect export profitability.
5. Limited Public Shareholding Post IPO
Promoters will continue holding ~75%, limiting free float and liquidity in the early stages of listing.
Grey Market Premium (GMP)
As of November 11, 2025, the Tenneco Clean Air IPO GMP is reportedly around ₹29-32 per share, indicating moderate listing expectations. However, GMP trends often change as the issue progresses.
How to Apply for Tenneco Clean Air IPO
Investors can apply through any UPI-enabled IPO platform (Zerodha, Groww, Angel One, etc.) or via their bank’s ASBA facility. The cut-off time for UPI mandate confirmation is 5 PM, November 14, 2025.
Conclusion – Should You Invest or Avoid?
Tenneco Clean Air India Ltd stands as a market leader in clean air and suspension solutions with robust R&D and global backing. Despite being a complete OFS, the issue is fairly valued and supported by strong financial metrics, brand legacy, and growth potential from tightening emission standards.
✅ My View: Invest for medium to long-term gains.
Investors looking for exposure to the automotive technology and clean air segment can consider subscribing to this IPO.
Frequently Asked Questions (FAQs)
1. What is the Tenneco Clean Air IPO date?
The IPO opens on November 12, 2025, and closes on November 14, 2025.
2. What is the lot size and minimum investment?
The lot size is 37 shares, and the minimum investment for retail investors is ₹14,689.
3. Is this IPO a fresh issue or an offer for sale?
It is a 100% Offer for Sale by Tenneco Mauritius Holdings Ltd.
4. What is Tenneco Clean Air IPO GMP today?
The latest GMP is around ₹29-32 per share (as of November 11, 2025).
5. Should I invest in this IPO for listing gains?
Short-term listing gains may be moderate, but it holds strong long-term potential.
6. Who are the lead managers?
JM Financial, Axis Capital, and HSBC Securities.
7. When is the tentative listing date?
The shares are expected to list on November 19, 2025.
Disclaimer: This article is for educational purposes only and not investment advice. Investors should read the Red Herring Prospectus (RHP) and consult their financial advisor before investing.
