The Tenneco Clean Air IPO has opened for subscription on November 12, 2025, offering investors an opportunity to participate in India’s leading emission control and automotive components manufacturer. This comprehensive guide covers everything you need to know about the Tenneco Clean Air IPO, including subscription dates, price band, grey market premium (GMP), financial performance, expert reviews, and investment recommendations to help you make an informed decision.
Table of Contents
- About Tenneco Clean Air India Limited
- Tenneco Clean Air IPO Details
- Important Dates & Timeline
- Price Band & Lot Size
- Grey Market Premium (GMP) Analysis
- Financial Performance & Key Metrics
- Competitive Strengths & Risk Factors
- How to Apply & Subscription Process
- Expert Reviews & Recommendations
- Should You Invest? Investment Strategy
- Frequently Asked Questions (FAQs)
About Tenneco Clean Air India Limited
Tenneco Clean Air India Limited is a subsidiary of the US-based Tenneco Inc., a global leader in designing and manufacturing clean air and powertrain products for automotive applications. Incorporated in 2018, the company operates within the Clean Air division, focusing on cutting-edge emission control technologies for both light and commercial vehicles across India.
The company specializes in advanced exhaust and after-treatment systems that help vehicle manufacturers meet India’s increasingly stringent emission norms, particularly the Bharat Stage VI standards. Its comprehensive product portfolio includes catalytic converters, diesel particulate filters (DPFs), selective catalytic reduction (SCR) systems, mufflers, and exhaust pipes.
As of March 31, 2025, Tenneco Clean Air operates 12 strategically located manufacturing facilities across seven states and one union territory in India, comprising seven Clean Air & Powertrain Solutions facilities and five Advanced Ride Technology facilities. The company employs 145 dedicated professionals in its design, engineering, and R&D departments, underscoring its commitment to innovation and technological advancement. Similar to other recent mainboard offerings like the PhysicsWallah IPO 2025, Tenneco’s public offering represents a significant opportunity for retail and institutional investors.
Tenneco Clean Air IPO Details
The Tenneco Clean Air IPO is a mainboard initial public offering worth ₹3,600 crores, making it one of the significant IPO launches in November 2025. This is entirely an Offer for Sale (OFS), meaning all proceeds will go to the selling shareholders, and the company will not receive any fresh capital from this issue.
| IPO Parameter | Details |
|---|---|
| Issue Size | ₹3,600.00 Crores |
| Issue Type | Book Building (Offer for Sale) |
| Total Shares Offered | 9,06,80,101 equity shares |
| Face Value | ₹10 per share |
| Price Band | ₹378 to ₹397 per share |
| Lot Size | 37 shares |
| Listing Exchanges | BSE, NSE |
| Pre-Issue Shareholding | 40,36,04,309 shares (100% by Tenneco Inc.) |
| Post-Issue Shareholding | 40,36,04,309 shares (78% by Tenneco Inc.) |
| Market Capitalization | ₹16,023.09 Crores (at upper price band) |
Investor Category Allocation: The IPO reserves not more than 50% for Qualified Institutional Buyers (QIB), not less than 35% for Retail Individual Investors (RII), and not less than 15% for Non-Institutional Investors (NII).
Important Dates & Timeline
The Tenneco Clean Air IPO subscription timeline is crucial for investors planning to participate in this offering. Here’s the complete schedule from opening to listing:
| Event | Date |
|---|---|
| IPO Open Date | Wednesday, November 12, 2025 |
| IPO Close Date | Friday, November 14, 2025 |
| Basis of Allotment | Monday, November 17, 2025 |
| Initiation of Refunds | Tuesday, November 18, 2025 |
| Credit to Demat Account | Tuesday, November 18, 2025 |
| Tentative Listing Date | Wednesday, November 19, 2025 |
| UPI Mandate Cut-off Time | 5:00 PM on Friday, November 14, 2025 |
Investors must ensure their UPI mandate is confirmed by 5 PM on the closing day to avoid application rejection. The subscription window remains open for three working days, providing ample opportunity for retail and institutional investors to participate.
Price Band & Lot Size
The Tenneco Clean Air IPO price band has been fixed at ₹378 to ₹397 per share, with a minimum application requirement of 37 shares per lot. This pricing structure makes the IPO accessible to retail investors while maintaining institutional participation.
Investment Requirements by Category
| Investor Category | Lots | Shares | Investment Amount (at ₹397) |
|---|---|---|---|
| Retail Minimum | 1 | 37 | ₹14,689 |
| Retail Maximum | 13 | 481 | ₹1,90,957 |
| Small HNI (s-NII) Minimum | 14 | 518 | ₹2,05,646 |
| Small HNI Maximum | 68 | 2,516 | ₹9,98,852 |
| Big HNI (b-NII) Minimum | 69 | 2,553 | ₹10,13,541 |
The minimum investment of ₹14,689 makes this IPO relatively accessible compared to other large mainboard offerings. Retail investors can apply for up to 13 lots, while HNI investors have higher allocation limits based on their category.
Grey Market Premium (GMP) Analysis
The Tenneco Clean Air IPO GMP has shown encouraging trends, indicating positive investor sentiment ahead of the listing. As of November 12, 2025, the grey market premium stands at ₹61 to ₹79, suggesting potential listing gains of 15% to 20% over the upper price band of ₹397.
Current GMP Trends
| Date | GMP (₹) | Expected Listing Price | Potential Gain (%) |
|---|---|---|---|
| November 6, 2025 | ₹87-100 | ₹484-497 | 21.9%-25.2% |
| November 10, 2025 | ₹67 | ₹464 | 16.9% |
| November 12, 2025 (Morning) | ₹61 | ₹458 | 15.4% |
| November 12, 2025 (Latest) | ₹79 | ₹476 | 19.9% |
Important Note: Grey Market Premium (GMP) is an unofficial indicator and not regulated by SEBI. It represents informal trading of IPO shares before listing and should not be the sole factor in investment decisions. GMP can fluctuate significantly based on market conditions and overall sentiment.
The GMP has experienced some volatility, declining from a high of ₹100 on November 6 to ₹61 on November 12 morning, before recovering to ₹79. This fluctuation reflects changing investor sentiment and broader market conditions. Despite the decline, the current GMP still suggests healthy listing gains, making the Tenneco Clean Air IPO attractive for short-term investors seeking listing day profits.
Financial Performance & Key Metrics
Understanding the financial health of Tenneco Clean Air India Limited is crucial for making informed investment decisions. The company has demonstrated mixed financial performance with declining revenue but significantly improved profitability margins.
Revenue and Profitability Trends
| Financial Parameter | FY 2023 | FY 2024 | FY 2025 | Q1 FY 2026 |
|---|---|---|---|---|
| Total Income (₹ Cr) | 4,886.96 | 5,537.39 | 4,931.45 | 1,316.43 |
| EBITDA (₹ Cr) | 570.63 | 612.09 | 815.24 | 228.88 |
| EBITDA Margin (%) | 11.68 | 11.05 | 16.54 | 17.38 |
| PAT (₹ Cr) | 381.04 | 416.79 | 553.14 | 168.09 |
| PAT Margin (%) | 7.80 | 7.53 | 11.22 | 12.77 |
| Net Worth (₹ Cr) | 1,378.82 | 1,116.59 | 1,255.09 | 1,250.38 |
The company experienced an 11% decline in revenue from FY24 to FY25, primarily due to lower volumes in the commercial vehicle segment and temporary plant shutdowns. However, the profit after tax increased by an impressive 33%, demonstrating improved operational efficiency and better cost management.
Key Financial Ratios & Valuation
| Metric | Value |
|---|---|
| Return on Equity (ROE) | 42.65% |
| Return on Capital Employed (ROCE) | 56.78% |
| Return on Net Worth (RoNW) | 46.65% |
| Earnings Per Share (EPS) – Pre IPO | ₹13.71 |
| Earnings Per Share (EPS) – Post IPO | ₹16.66 |
| Price to Earnings (P/E) – Pre IPO | 28.97x |
| Price to Earnings (P/E) – Post IPO | 23.83x |
| Price to Book Value | 12.77x |
The company’s exceptional ROE of 42.65% and ROCE of 56.78% indicate highly efficient capital utilization and strong profitability. However, the P/E ratio of 23.83x (post-IPO) suggests the stock is priced at a premium compared to some industry peers, reflecting investor confidence in its growth prospects and market leadership position. Investors should compare these metrics with broader market trends, similar to how they would analyze mutual fund performance data when making investment decisions.
Competitive Strengths & Risk Factors
Key Competitive Strengths
Tenneco Clean Air India Limited boasts several competitive advantages that position it well for long-term growth in India’s automotive components sector:
- Global Leadership Legacy: As a subsidiary of Tenneco Inc., the company benefits from global best practices, advanced R&D capabilities, and cutting-edge emission control technologies.
- Strong OEM Relationships: Long-standing partnerships with major automotive manufacturers including Maruti Suzuki, Hyundai, Tata Motors, Mahindra, and others provide stable revenue visibility.
- Strategic Manufacturing Footprint: With 12 manufacturing facilities across India, the company enjoys proximity to key automotive hubs and can serve customers efficiently.
- Localized Supply Chain: Approximately 91-92% of raw material costs (excluding substrates) come from domestic sources, reducing forex exposure and ensuring supply chain resilience.
- Technology Leadership: With 145 dedicated R&D professionals, the company continuously innovates to meet evolving emission standards, particularly BS-VI and future norms.
- Industry Tailwinds: India’s automotive component sector is projected to grow at 9-11% CAGR between FY25 and FY30, reaching ₹13,500-14,500 billion, driven by stricter emission norms and vehicle premiumization.
Key Risk Factors
Despite its strengths, investors should be aware of potential risks associated with the Tenneco Clean Air IPO:
- Revenue Volatility: The 11% revenue decline in FY25 highlights vulnerability to automotive industry cycles, OEM production volumes, and commercial vehicle demand fluctuations.
- Global Economic Dependence: As a subsidiary of US-based Tenneco Inc., the company may be affected by global economic conditions and parent company strategy.
- Offer for Sale Structure: Since the IPO is entirely OFS with no fresh capital infusion, the company won’t receive funds for expansion or debt reduction, limiting immediate growth benefits.
- Competitive Intensity: The automotive components sector faces intense competition from domestic and international players, potentially pressuring margins.
- Regulatory Changes: While stricter emission norms drive demand, sudden regulatory shifts or changes in government policies could impact business operations.
- Customer Concentration: Heavy dependence on a few major OEMs creates revenue concentration risk if any key customer reduces orders.
How to Apply & Subscription Process
Applying for the Tenneco Clean Air IPO is a straightforward process available through multiple channels. Investors can submit their applications using either UPI (Unified Payments Interface) or ASBA (Application Supported by Blocked Amount) methods.
Application Methods
1. Through Online Brokers (UPI Method): Most convenient for retail investors using platforms like Zerodha, Upstox, Groww, 5Paisa, and Angel One. Simply log into your trading account, navigate to the IPO section, fill out the application form, and authorize payment via UPI.
2. Through Net Banking (ASBA Method): Available through your bank’s internet banking portal if they offer IPO application services. HDFC Bank, SBI, ICICI Bank, and most major banks provide this facility.
3. Through Bank Branch: Visit your bank branch, fill out a physical application form, and submit it along with required documents.
Apply for Tenneco Clean Air IPO with Zero Brokerage
Open a free trading and demat account to apply for the Tenneco Clean Air IPO with these trusted platforms:
Open Free Demat Account on Dhan Open Free Demat Account on ZerodhaStep-by-Step Application Guide (UPI Method)
- Login to Your Trading Account: Access your broker’s platform (mobile app or website).
- Navigate to IPO Section: Find the Tenneco Clean Air IPO listing under upcoming or live IPOs.
- Enter Application Details: Specify the number of lots you want to apply for (minimum 1 lot = 37 shares).
- Select Bid Price: Choose between ₹378 to ₹397 or select “Cut-off” price to get shares at the final issue price.
- Provide UPI ID: Enter your UPI ID linked to your bank account with sufficient funds.
- Submit Application: Review details and submit your application.
- Approve UPI Mandate: Check your UPI app for the mandate request and approve it before the cut-off time (5 PM on November 14, 2025).
- Funds Blocking: The application amount will be blocked in your bank account until allotment is finalized.
Remember to approve the UPI mandate within the stipulated time to ensure your application is valid. Failure to do so will result in automatic rejection of your IPO application.
Expert Reviews & Recommendations
The Tenneco Clean Air IPO has received mixed to positive reviews from leading brokerage houses and market analysts. As of November 12, 2025, out of 14 expert reviews, 12 brokers recommend “Subscribe,” 2 suggest “Neutral,” and none recommend “Avoid.”
Brokerage Recommendations Summary
JM Financial: Recommends Subscribe for long-term investors, highlighting the company’s leadership in emission control technologies and strong OEM relationships. They view the valuation as reasonable given the industry growth prospects.
Axis Capital: Neutral stance citing concerns about revenue decline and OFS structure. However, acknowledges strong profitability improvement and market positioning.
Aditya Birla Capital: Subscribe recommendation, emphasizing that Tenneco benefits significantly from stringent emission norms and rapid premiumization trends in the automotive sector.
Mater Capital: Positive outlook, stating that “Tenneco Clean Air India Ltd is strategically placed to capitalize on industry opportunities. Investors may consider the IPO as a potential long-term investment opportunity.”
Consensus View
| Investment Horizon | Recommendation | Rationale |
|---|---|---|
| Short-term (Listing Gains) | Subscribe with Caution | Positive GMP indicates potential 15-20% listing gains, but market volatility is a risk |
| Medium-term (6-12 months) | Subscribe | Strong fundamentals, industry tailwinds, and improving margins support growth |
| Long-term (1+ years) | Subscribe | Leadership position, technological edge, and sector growth provide solid foundation |
Most analysts agree that the company’s strong market position, improving profitability, and exposure to India’s growing automotive sector make it an attractive investment for medium to long-term investors. However, the OFS structure and recent revenue decline warrant careful consideration. Similar to other recent listings like the Tata Motors Commercial Vehicle listing, understanding the company’s fundamentals is crucial before investing.
Should You Invest? Investment Strategy
Deciding whether to invest in the Tenneco Clean Air IPO depends on your investment goals, risk appetite, and time horizon. Here’s a comprehensive analysis to help you make an informed decision:
Reasons to Invest
- Strong Industry Fundamentals: India’s automotive components sector is growing at 9-11% CAGR, driven by stricter emission norms, electrification, and premiumization trends.
- Market Leadership: Tenneco’s global expertise, advanced technology, and established OEM relationships provide competitive moats.
- Improving Profitability: Despite revenue decline, PAT grew 33% in FY25, demonstrating operational efficiency improvements and margin expansion.
- Exceptional Returns Ratios: ROE of 42.65% and ROCE of 56.78% indicate superior capital efficiency and profitability.
- Regulatory Tailwinds: Increasingly stringent emission norms (BS-VI and beyond) create sustained demand for advanced emission control systems.
- Positive GMP: Current grey market premium of ₹61-79 suggests healthy listing gains potential.
- Diversified Customer Base: Relationships with multiple major OEMs reduce concentration risk.
Reasons to Be Cautious
- Offer for Sale Structure: No fresh capital for the company means no immediate growth investments or debt reduction benefits.
- Revenue Decline: 11% revenue drop in FY25 raises concerns about demand stability and competitive pressures.
- Premium Valuation: P/E ratio of 23.83x and Price-to-Book of 12.77x suggest the stock is priced at a premium.
- Market Volatility: Current market conditions and overall IPO sentiment can impact listing performance.
- Cyclical Industry: Automotive sector dependence exposes the company to economic cycles and OEM production fluctuations.
- Global Economic Risks: As a subsidiary of US-based Tenneco Inc., global economic conditions could affect strategy and operations.
Investment Recommendation by Investor Profile
| Investor Type | Recommendation | Strategy |
|---|---|---|
| Conservative Investors | Avoid or Subscribe Partially | Wait for listing and observe performance before investing; if subscribing, apply for 1-2 lots only |
| Moderate Risk Investors | Subscribe | Apply for 50-70% of maximum retail allocation; hold for 6-12 months to benefit from growth |
| Aggressive Investors | Subscribe Fully | Apply for maximum retail allocation (13 lots); consider listing gains or long-term holding |
| Long-term Investors | Subscribe | Apply with 2-3 year horizon; strong fundamentals support wealth creation despite near-term volatility |
| Short-term Traders | Subscribe with Caution | Positive GMP supports listing gains; book profits on listing day if premium is realized |
Final Verdict
The Tenneco Clean Air IPO presents a reasonable investment opportunity for investors with medium to long-term horizons. The company’s market leadership, improving profitability, strong return ratios, and favorable industry trends outweigh concerns about revenue decline and OFS structure. However, the premium valuation requires careful consideration.
For short-term investors, the positive GMP offers potential listing gains, though market volatility remains a risk. Long-term investors can benefit from the company’s strategic positioning in India’s growing automotive components sector and its technological leadership in emission control systems.
Recommended Action: Subscribe to the Tenneco Clean Air IPO if you have a medium to long-term investment horizon (1+ years) and can tolerate moderate risk. Apply for 2-5 lots for retail investors to balance risk and reward. Monitor GMP trends and overall market conditions before the final decision.
Frequently Asked Questions (FAQs)
What is the Tenneco Clean Air IPO price band?
The Tenneco Clean Air IPO price band is set at ₹378 to ₹397 per equity share. Investors can bid at any price within this range or select the cut-off price to receive shares at the final issue price determined through the book-building process.
When does the Tenneco Clean Air IPO open and close?
The Tenneco Clean Air IPO opens for subscription on Wednesday, November 12, 2025, and closes on Friday, November 14, 2025. The subscription window remains open for three working days, giving investors ample time to submit their applications.
What is the minimum investment required for Tenneco Clean Air IPO?
The minimum investment required is ₹14,689, which corresponds to 1 lot of 37 shares at the upper price band of ₹397 per share. Retail investors can apply for a maximum of 13 lots (481 shares) amounting to ₹1,90,957.
What is the current Tenneco Clean Air IPO GMP?
As of November 12, 2025, the Tenneco Clean Air IPO grey market premium (GMP) ranges between ₹61 to ₹79, indicating an expected listing price of ₹458 to ₹476, representing potential gains of 15% to 20% over the upper price band. However, GMP is unofficial and can fluctuate based on market sentiment.
When will Tenneco Clean Air shares be listed?
The tentative listing date for Tenneco Clean Air shares is Wednesday, November 19, 2025, on both BSE and NSE. The basis of allotment is expected on November 17, 2025, with share credit to demat accounts on November 18, 2025.
How can I apply for the Tenneco Clean Air IPO?
You can apply for the Tenneco Clean Air IPO through online brokers using the UPI payment method or through your bank’s net banking portal using ASBA. Popular platforms include Zerodha, Upstox, Groww, 5Paisa, Angel One, or directly through HDFC Bank, SBI, and other banks offering IPO application services.
Is Tenneco Clean Air IPO good for investment?
Yes, the Tenneco Clean Air IPO is recommended by 12 out of 14 expert analysts for medium to long-term investment. The company has strong market leadership, improving profitability with 33% PAT growth, exceptional ROE of 42.65%, and benefits from India’s growing automotive sector projected to grow at 9-11% CAGR. However, investors should consider the revenue decline and OFS structure before investing.
What is the lot size for Tenneco Clean Air IPO?
The lot size for the Tenneco Clean Air IPO is 37 shares. Retail investors can apply for a minimum of 1 lot (37 shares) and a maximum of 13 lots (481 shares). Small HNIs must apply for at least 14 lots (518 shares), while Big HNIs must apply for at least 69 lots (2,553 shares).
Who are the book running lead managers for Tenneco Clean Air IPO?
The book running lead managers for the Tenneco Clean Air IPO are JM Financial Ltd., Citigroup Global Markets India, Axis Capital, and HSBC Securities and Capital Markets (India). MUFG Intime India Pvt. Ltd. is serving as the registrar for the issue.
What does Tenneco Clean Air India Limited do?
Tenneco Clean Air India Limited is a leading manufacturer of emission control and automotive exhaust systems for light and commercial vehicles. The company produces catalytic converters, diesel particulate filters (DPFs), selective catalytic reduction (SCR) systems, mufflers, and exhaust pipes to help vehicles meet Bharat Stage VI and other emission standards.
What are the financial highlights of Tenneco Clean Air?
For FY 2025, Tenneco Clean Air reported total income of ₹4,931.45 crores, profit after tax of ₹553.14 crores (up 33% from FY24), EBITDA margin of 16.54%, and PAT margin of 11.22%. The company has an impressive ROE of 42.65% and ROCE of 56.78%, indicating strong capital efficiency.
Should I apply for Tenneco Clean Air IPO for listing gains?
Based on the current GMP of ₹61-79, the Tenneco Clean Air IPO may deliver listing gains of 15-20%. Short-term investors seeking listing day profits can consider applying, but should be aware of market volatility risks. It’s advisable to monitor GMP trends and overall market conditions before making the final decision.
What are the key risks in Tenneco Clean Air IPO?
Key risks include: (1) 11% revenue decline in FY25 indicating demand challenges, (2) Offer for Sale structure with no fresh capital for company growth, (3) Premium valuation at P/E of 23.83x, (4) Dependence on cyclical automotive industry, (5) Customer concentration risk with major OEMs, and (6) Exposure to global economic conditions through parent company.
How to check Tenneco Clean Air IPO allotment status?
You can check the Tenneco Clean Air IPO allotment status on November 17, 2025, through the registrar’s website (MUFG Intime India Pvt. Ltd.) at linkintime.co.in or through the BSE/NSE websites. You’ll need your PAN number, application number, or demat account details to check the allotment status.
What is the market cap of Tenneco Clean Air after IPO?
At the upper price band of ₹397 per share, the post-IPO market capitalization of Tenneco Clean Air India Limited will be approximately ₹16,023.09 crores. The IPO represents a 22% dilution of the promoter’s stake, with Tenneco Inc. reducing its holding from 100% to 78%.
## ConclusionThe Tenneco Clean Air IPO represents a compelling investment opportunity in India’s rapidly growing automotive components and emission control sector. With strong market leadership, improving profitability margins, exceptional return ratios (ROE of 42.65% and ROCE of 56.78%), and favorable industry tailwinds driven by stringent emission norms, the company is well-positioned for long-term growth.
The current grey market premium of ₹61-79 suggests positive investor sentiment and potential listing gains of 15-20%, making it attractive for both short-term traders and long-term investors. While concerns about the 11% revenue decline in FY25 and the OFS structure exist, the 33% growth in profit after tax demonstrates strong operational efficiency and margin expansion capabilities.
For retail investors seeking exposure to India’s automotive sector growth story, the Tenneco Clean Air IPO offers a reasonable entry point, particularly for those with a medium to long-term investment horizon of 1-3 years. However, investors should carefully assess their risk tolerance, monitor market conditions, and consider expert recommendations before making their investment decision.
Whether you’re looking for listing gains or building a long-term portfolio with quality automotive component stocks, the Tenneco Clean Air IPO deserves serious consideration as it opens for subscription from November 12-14, 2025.
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Start Investing with Dhan Start Investing with ZerodhaDisclaimer: This article is for informational purposes only and should not be considered as financial advice. IPO investments are subject to market risks. Investors should conduct their own research or consult with a financial advisor before making investment decisions. The grey market premium mentioned is unofficial and not regulated by SEBI.
