Tenneco Clean Air India files DRHP with Sebi to launch Rs 3,000 crore IPO

Tenneco Clean Air India, an affiliate of the US-headquartered Tenneco Group, a prominent global Tier I automotive component supplier, has submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The offer consists of an Offer for Sale (OFS) from Tenneco Mauritius Holdings Limited, referred to as Promoter Selling Shareholder, aiming to raise up to Rs 3,000 crore.

The company's IPO includes equity shares with a face value of Rs 10 each, proposed to be listed on the "BSE" and the "NSE," collectively known as the "Stock Exchanges." Tenneco Clean Air India Limited, established in 1979 with its first manufacturing plant set up in Parwanoo, manufactures and delivers advanced clean air, powertrain, and suspension solutions tailored for Indian Original Equipment Manufacturers (OEMs) and export markets.

Tenneco Clean Air India Limited serves a diverse clientele, including OEMs in "PVs," "CVs," which encompass "CTs" and "OHs," and industrial applications categorised under "Industrial/Others." Additionally, the company caters to the aftermarket primarily through "Motocare," a subsidiary of Tenneco LLC. The company is a leader in supplying Clean Air Solutions to the Indian CT OEMs, holding a 60% market share, and ranks among the top suppliers for other vehicle categories.

In terms of market positioning, Tenneco Clean Air India is the second-largest supplier to Indian OH OEMs, excluding tractors, with a 42% market share. It is also among the top four suppliers to Indian PV OEMs, with a 20% market share, and the largest supplier of shock absorbers and struts to Indian PV OEMs, holding a 48% market share. These market shares are based on revenue metrics for Fiscal 2024, according to a CRISIL Report.

The financial health and performance of the Tenneco Group is robust, having generated $16,777 million in revenue for the year ending December 31, 2024. This underscores the company's significant presence and impact within the automotive component industry.

Handling the IPO process, JM Financial, Citigroup Global Markets India, Axis Capital and HSBC Securities and Capital Markets (India) are appointed as the Book Running Lead Managers. This selection of lead managers indicates a strategic approach to efficiently managing the IPO offering and ensuring broad market participation.

The shares offered through the Red Herring Prospectus are proposed to be listed on the "Stock Exchanges," providing investors with a platform to engage with the company. As Tenneco Clean Air India advances this IPO, the industry awaits its implications on the market landscape and investor interest.

With the filing of the DRHP, Tenneco Clean Air India Limited takes a significant step towards expanding its market presence, leveraging its established reputation in the automotive sector, and fulfilling its growth ambitions through this public offering. This move is expected to enhance its competitive edge and attract substantial investor interest, further solidifying its position in the industry.