Tenneco Clean Air India IPO, which opened for subscription on November 12, was subscribed to over 42% on the first day of bidding. The mainboard issue will close for subscription on November 14.
Tenneco Clean Air India focuses on producing and delivering advanced, precision-engineered clean air, powertrain, and suspension solutions tailored for Indian original equipment manufacturers and international markets.
Tenneco Clean Air India IPO subscription status
According to the BSE data, the Tenneco Clean Air India IPO has received a total of 2.93x subscription as of the second round of public bidding, as investors booked 19,52,11,778 equity shares, compared to the 6,66,66,666 shares on offer.
Non-Institutional Investors (NIIs) segment of the public issue received the most bids as investors subscribed to 7.18 times the IPO, booking 10,25,86,348 shares, compared to the 1,42,85,715 shares on offer.
The Qualified Institutional Buyers (QIB) investors booked 2.34 times the public issue, as investors booked 4,45,77,970 shares, compared to 1,90,47,617 shares on offer.
The retail investors booked the IPO 1.44x after the second day of the public bidding, as investors subscribed for 4,80,47,460 shares, compared to the 3,33,33,334 shares on offer for the investor segment.
Tenneco Clean Air India IPO Review
According to ICICI Direct, Tenneco’s strong position in clean-air and ride performance systems, combined with its long-standing partnerships with OEMs, positions the company well to capitalise on emerging trends in India’s automotive industry. These structural strengths are expected to drive sustainable growth in the coming years.
“We recommend Subscribe rating on Tenneco Clean Air India Ltd, given its robust business fundamentals, healthy 30%+ return ratios profile and reasonable valuations, i.e. ~29x PE & ~19x EV/EBITDA on FY25 basis,” said the brokerage.
Meanwhile, brokerage firm SBICAP Securities believes that the company effectively leverages its parent’s portfolio of 5,000 patents and 7,500 trademarks to design and develop products specifically for Indian OEMs. It is well-positioned to benefit from the rising premiumisation trend in the Indian automotive market.
“At the upper price band of ₹397, the issue is valued at FY25 P/E and EV/EBITDA multiple of 29.0x and 19.3x, respectively. We recommend investors to SUBSCRIBE to the issue,” said the brokerage.
Tenneco Clean Air India IPO GMP today
The grey market premium (GMP) for Tenneco Clean Air’s IPO stands at ₹85 today. Based on the upper end of the IPO price band and the current GMP, the estimated listing price is around ₹482 per share — a 21.41% premium over the IPO price of ₹482.
Tenneco Clean Air India IPO details
The Tenneco Clean Air IPO consists entirely of an Offer for Sale (OFS) by the promoter, Tenneco Mauritius Holdings Ltd, with no fresh equity issuance. According to the draft papers filed in June, the company has raised the issue size from the earlier planned ₹3,000 crore to ₹3,600 crore.
The IPO price band is fixed at ₹378– ₹397 per share, and the objective is to benefit from the advantages of public listing, as outlined in the documents.
JM Financial, Citigroup Global Markets India, Axis Capital, and HSBC Securities and Capital Markets (India) are the lead managers for the issue, while MUFG Intime India Pvt Ltd is acting as the registrar.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
