Tenneco Clean Air India Ltd IPO
Auto Ancillaries
Price Band
₹378 – ₹397
Lot Size
37
Minimum Bid Quantity
37
Minimum Investment
₹14689
Issue Size
₹3600Cr
Opens
2025-11-12
Closes
2025-11-14
Listing
19-11-2025
Subscription Status
Qualified Institutional Buyers
149.85 x
Non-Institutional Investor
40.44 x
Retail Individual Investor
4.66 x
Total
53.81 x
IPO Details
Issue Type
EQUITY
Face Value
₹10
Tick Size
1
ISIN
INE19RI01016
Pre-Apply Available
No
Daily Bidding Time
10:00:00 - 17:00:00
About the Company
Tenneco Clean Air India is part of the US-headquartered Tenneco Group, a global Tier I supplier of automotive components. The company designs, manufactures, and supplies clean air, powertrain, and suspension solutions for Indian and international original equipment manufacturers (OEMs). Its products are used across passenger and commercial vehicles, off-highway equipment, and industrial applications such as generator sets and small commercial vehicles. The company operates through two divisions: clean air & powertrain solutions, which includes exhaust aftertreatment systems, catalytic converters, mufflers, engine bearings, sealing systems, and ignition products; and advanced ride technologies, which produces shock absorbers, struts, and suspension systems. Tenneco Clean Air India established its first manufacturing plant in 1979 at Parwanoo and currently operates 12 manufacturing facilities across seven states and one Union Territory in India, along with two research and development (R&D) technical centres. Use of proceeds: The IPO is an offer for sale (OFS). So, the company will not receive any proceeds from the offer. The net proceeds from the offer will go to the promoter selling shareholder, Tenneco Mauritius Holdings Ltd. The primary objective of the offer is to achieve the benefits of listing the equity shares on the stock exchanges, which is expected to enhance the company’s visibility and brand recognition. Listing will also provide liquidity to the existing shareholder and create a public market for the company’s shares in India.
Pros
- • Tenneco Clean Air India claims to be a leading supplier of clean air, powertrain, and suspension solutions for both Indian and global OEMs. According to the CRISIL report, the company held a 57 percent market share among Indian commercial truck OEMs, 68 percent among off-highway OEMs (excluding tractors), and 19 percent among passenger vehicle OEMs. The company is also the largest supplier of shock absorbers and struts to Indian passenger vehicle OEMs, with a 52 percent market share as of FY25. It further claims to have served 101 customers for the three months ended June 30, 2025, and 119 customers in FY25, including all top seven passenger vehicle and all top five commercial truck OEMs in India.
- • Tenneco Clean Air India claims to have a broad portfolio of proprietary and customised products that include exhaust aftertreatment systems, catalytic converters, mufflers, engine bearings, sealing systems, spark plugs, shock absorbers, struts, and advanced suspension systems. The company supplies to both OEMs and the aftermarket, while also generating export revenue through Tenneco Group entities and global OEMs. This diversified structure, covering multiple vehicle segments and geographies, is said to reduce dependency on any single market and provide financial stability against cyclical variations in the automotive industry.
- • Tenneco Clean Air India claims to leverage Tenneco Group’s extensive global R&D network, which holds over 5,000 patents and 7,500 trademarks worldwide, to develop proprietary, modular, and customised products suited to Indian market requirements. The company operates two R&D technical centres in India, one in Pune for clean air solutions and another in Hosur for advanced ride technologies, both equipped for advanced simulations, prototyping, and performance testing.
Cons
- • The company derives a significant portion of its revenue from passenger vehicle (PV) OEMs in India. They accounted for Rs 762.64 crore (59.32 percent) of the company’s total revenue for the three months ended June 30, 2025, and Rs 2,995.52 crore (61.26 percent) in FY25; Rs 3,358.03 crore (61.42 percent) in FY24; and Rs 2,935.04 crore (60.80 percent) in FY23. This concentration exposes the company to fluctuations in the Indian PV sector, which is influenced by factors such as consumer demand, income levels, fuel prices, interest rates, and government policies. Any slowdown or adverse developments in the Indian PV market could negatively affect the company’s business operations, revenue growth, and financial stability.
- • The top five customers accounted for Rs 798.43 crore (62.10 percent) of the company’s total revenue for the three months ended June 30, 2025, and Rs 3,045.30 crore (62.27 percent) in FY25, Rs 3,677.11 crore (67.25 percent) in FY24, and Rs 2,953.27 crore (61.18 percent) in FY23. The company does not have exclusivity agreements with these customers and competes for new business through supplier selection processes, which range from six to over 18 months. Any loss of one or more of these major customers, or a significant reduction in orders from them, could hurt the company’s business operations, financial condition, and cash flow.
- • Tenneco Clean Air India’s primary raw material is steel, which accounted for Rs 448.56 crore (63.25 percent) of the company’s total cost of raw materials consumed excluding substrates for the three months ended June 30, 2025, and Rs 1,665.34 crore (62.35 percent) in FY25; Rs 1,619.55 crore (61.43 percent) in FY24; and Rs 1,764.09 crore (71.38 percent) in FY23. The company remains exposed to fluctuations in steel prices driven by factors such as global demand-supply imbalances, import restrictions, tariffs, and currency movements. In FY25, for instance, the Government of India restricted imports of certain steel grades, requiring additional regulatory approvals. Any sharp rise in steel prices or supply disruptions could hurt the company’s cost structure, profitability, and ability to meet customer demand on schedule.
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