Tenneco Clean Air India IPO opens today: Should you subscribe to it?

The initial public offering of Tenneco Clear Air India kicks-off for bidding on Wednesday, November 12. The automotive solutions player shall be offering its shares in the range of Rs 378-397 apeice. Investors can apply for a minimum of 37 equity shares and its multiples thereafter. The issue will close for bidding on Friday, November 14.

The IPO is entirely an offer-for-sale (OFS) of up to 9,06,80,101 equity shares by its parent Tenneco Mauritius Holding, which is valued at Rs 3,600 crore. The company will not receive any proceeds from the issue. Shares of the company shall be listed on both BSE and NSE on November 19, Wednesday.

Incorporated in 2018, Chennai-based Tenneco Clean Air India is a subsidiary of Tenneco Inc, a global leader in designing and manufacturing clean air and powertrain products for automotive applications. The company operates within the Clean Air division, focusing on emission control technologies for both light and commercial vehicles.

Tenneco Clean Air raised Rs 1,080 crore from 58 anchor investors as it allocated 2.72 crore equity shares at 397 apeice. Investors including Nomura Funds, Fidelity, BlackRock, Government Pension Fund Global, Abu Dhabi Investment Authority, Goldman Sachs, SBI MF, ICICI Prudential MF, HDFC AMC, Kotak Mahindra AMC, Axis MF, Tata MF, Motilal Oswal AMC, Invesco participated in the anchor book.

Tenneco Clean Air India reported a net profit of Rs 168.09 crore with a revenue of Rs 1,316.43 crore for the three-months ended on June 30, 2025. Its net loss came in at 553.14 crore with a revenue Rs 4,931.45 crore for the financial year ended March 2025. At the current valuations, the company is commanding a market capitalization little more than Rs 16,000 crore.

Tenneco Clean Air India has reserved 50 per cent of the net offer qualified institutional bidders (QIBs), while non-institutional investors will get 15 per cent shares. Retail investors have an allocation of 35 per cent in the IPO. Last heard, the company was commanding a grey market premium of Rs 60-65 per share, suggesting more than 15-16 per cent gains for the investors.

JM Financial, Citigroup Global Markets India, Axis Capital, HSBC Securities and Capital Markets (India) are the book running lead managers of Tenneco Clear Air India IPO, while MUFG Intime India is the registrar of the issue. What a host of brokerage firms say about the IPO of Tenneco Clear Air India:  

ICICIDirect Research

Rating: Subscribe

Anchored by its strong leadership in clean-air & ride performance systems and long-standing OEM relationships, Tenneco stands well-positioned to benefit from the ongoing trends in India’s automotive ecosystem with structural tailwinds supporting sustainable growth over the coming years, said ICICIDirect Research.

"We recommend 'subscribe' rating on Tenneco Clean Air India, given its robust business fundamentals, healthy 30 per cent return ratios profile and reasonable valuations that are 29 times PE & 19 times EV/EBITDA on FY25 basis," it added. ICICIDirect has cited customer concentration risk, top 10 clients account for 80 per cent of sales and electrification and technology transition as key risks.  

Swastika Investmart

Rating: Neutral

Tenneco is a fundamentally strong company at a reasonable valuation. Based on its recent financial data, the issue appears moderately priced. Despite a marginal decline in revenue during FY25, the company has significantly improved its Ebitda margin from to 16.67 per cent in FY25. The absence of fresh issues and recent revenue decline limit near-term upside, said Swastika Investmart with a 'neutral' rating.  

SBI Securities

Rating: Subscribe

Tenneco India, a part of the Tenneco Group is a supplier of critical, highly engineered and technology intensive clean air, powertrain and suspension solutions with market leading positions. The issue is valued at FY25 P/E and EV/Ebitda multiple of 29 times and 19.3 times respectively, said SBI Securities.

"It effectively leverages the parent’s 5,000 patents and 7,500 trademarks to design and develop products suited for Indian OEMs and is ready to leverage the rising trend of premiumization in the Indian Auto industry. We recommend investors to 'subscribe' to the issue," it added.  

Reliance Securities

Rating: Subscribe

Tenneco Clean India emerges as a strong, future-ready player in the automotive emission control space, supported by its global lineage, diversified product base, and deep integration with leading OEMs, said Reliance Securities.

"The company is strategically positioned at the intersection of India’s tightening emission norms, industrial cleanair demands, and the global shift toward regulatory-compliant vehicular systems. Owing to strong developments, we recommend a 'subscribe' rating to the issue," it added.  

Canara Bank Securities

Rating: Subscribe

Tenneco India, a leading Tier-I auto component maker backed by the US-based Tenneco Group, holds strong market positions—57 per cent in commercial trucks, 68 per cent in off-highway, and 52 per cent in PV shock absorbers—supported by long -standing OEM partnerships and global R&D access, said Canara Bank Securities.

"Despite reliance on its parent for technology and IP, it maintains solid fundamentals with Rs553 crore PAT, 16.67 per cent Ebitda margin, 12 plants, and 86 per cent domestic sourcing. Valuations are attractive with a P/E of 29 times and P/B of 12.7 times versus peers at 48 times and 8.5 times. We recommend a 'subscribe' rating for both listing gains and long-term growth," it added.  

Aditya Birla Capital

Rating: Subscribe for long-term

Tenneco benefits significantly from the ever-changing stringent emission norms and the rapid trend of premiumization, leveraging the capabilities and expertise of its parent and strong relationships with OEMs. Tenneco is available at a reasonable valuation of 29 times and 19 times its FY25 P/E and EV/Ebitda multiple, said Aditya Birla Capital.

"Its strong net-debt free Balance Sheet, robust cash flows, improving Ebitda margins, focus towards a premium products portfolio and localization efforts, should assist Tenneco in maintaining a strong growth trajectory for the next few years. We have a 'subscribe' for long term recommendation to this issue," it added.  

BP Wealth

Rating: Subscribe for long-term

On the valuation front, with the company trading at a P/E of 29 times based on its FY25 earnings, at considerable discount compared to other components peers, said BP Wealth. "We thus recommend a 'subscribe' rating from a medium-to-long term perspective," it added.

SMIFS

Rating: Subscribe

"We recommend subscribing to the issue as with accelerating platform launches, content enrichment across PV and CT segments, and high scalability without major capacity additions, Tenneco India is positioned to consistently outperform industry growth while reinforcing its leadership in technology-intensive components," said SMIFS.  

Ventura Securities

Rating: Subscribe

Tenneco Clean Air is focusing on capturing opportunities driven by stricter emissions norms, premium vehicle demand, and the shift towards electric vehicles. It plans to leverage its strong market position, global R&D, and local manufacturing capabilities to enhance margins and expand its export footprint, said Ventura Securities with a 'subscribe' rating. However, risks related to customer concentration and the growing adoption of EV’s may impact future growth, it said.  

Sushil Finance

Rating: Subscribe for long-term

Tight working capital cycle along with cost-effective automation allowed them to be debt free, said Sushil Finance. "Tenneco is a reputed global brand backed by robust cost controls and localization efficiency. Looking at all the factors, risks, opportunities and valuation, investors may invest with a medium to long term horizon to the issue," it added.  

Lakshmishree Investments & Securities

Rating: Subscribe

Tenneco Clean Air India is a subsidiary of the global Tenneco Group, the company is a Tier I market leader in critical automotive components, benefiting structurally from regulatory tailwinds. It has demonstrated exceptional operational leverage and

profitability. The IPO is a pure OFS, with no fresh capital infusion to the company itself, said Lakshmishree Investments.

"Despite risks like the automotive industry's cyclical nature and the long-term threat from EV adoption to ICE components, Tenneco Clean Air India’s deep integration with top OEMs We recommend a 'subscribe' rating for investors seeking exposure to a premium, profitable leader in India's technology-driven auto component sector," it said.