Tenneco Clean Air Ltd IPO has launched its Initial Public Offering (IPO), which consists entirely of an offer for sale of 9.07 crore shares aggregating to Rs. 3,600.00 crores with a face value of Rs. 10 each.
Tenneco Clean Air Ltd IPO opens for subscription on November 12, 2025, and closes on November 14, 2025. The price band is set at Rs. 378 to 397 per equity share, with listing on BSE and NSE, and a tentative listing date of November 19, 2025.
GMP of On Tenneco Clean Air Ltd IPO
As of November 12, 2025, the shares of Tenneco Clean Air Ltd in the grey market were trading at a 15.37 percent premium. The shares in the Grey Market traded at Rs. 458. This gives it a premium of Rs. 61 per share over the cap price of Rs. 397.00.
Overview of Tenneco Clean Air Ltd
Tenneco Clean Air India Limited is a subsidiary of Tenneco Inc., Incorporated in 2018, a global leader in designing and manufacturing clean air and powertrain products for automotive applications. Operating under the Clean Air division, the company focuses on emission control technologies for both light and commercial vehicles.
In India, Tenneco Clean Air provides advanced exhaust and after-treatment systems that enable vehicle manufacturers to meet stringent emission norms such as Bharat Stage VI. Its product portfolio includes catalytic converters, diesel particulate filters (DPFs), mufflers, and exhaust pipes.
The company has strategically located manufacturing facilities across India to support OEMs and Tier 1 customers, emphasizing sustainability, innovation, and compliance with environmental regulations through advanced R&D and engineering capabilities.
As of March 31, 2025, Tenneco Clean Air India Limited operated 12 manufacturing facilities, comprising seven Clean Air & Powertrain Solutions facilities and five Advanced Ride Technology facilities, spread across seven states and one union territory.
The Clean Air & Powertrain Solutions division focuses on Clean Air and Powertrain Solutions, while the Advanced Ride Technologies division designs, manufactures, and sells shock absorbers, struts, and advanced suspension systems. The company’s commitment to innovation is reflected in its dedicated workforce, with 145 employees in the design, engineering, and R&D departments as of March 31, 2025.
Promoters of Tenneco Clean Air Ltd
The promoters of Tenneco Clean Air Ltd are TENNECO MAURITIUS HOLDINGS LIMITED, TENNECO (MAURITIUS) LIMITED, FEDERAL-MOGUL INVESTMENTS B.V., FEDERAL-MOGUL PTY LTD, and TENNECO LLC, bringing extensive expertise in automotive technologies, emission control, product innovation, and engineering excellence. Their visionary leadership and deep understanding of high-quality automotive solutions have been instrumental in establishing Tenneco Clean Air as a trusted name in India’s clean air and powertrain market.
Offer For Sale
Tenneco Mauritius Holdings Limited, a promoter selling shareholder, is offering up to equity shares with a face value of Rs. 10 each, aggregating up to Rs. 36,000.00 million. The weighted average cost of acquisition per equity share is Rs. 138.14.
Lead Managers of Tenneco Clean Air Ltd
JM Financial Limited, Citigroup Global Markets India Private Limited, Axis Capital Limited, and HSBC Securities and Capital Markets (India) Private Limited are acting as the Book Running Lead Managers. MUFG Intime India Private Limited (formerly Link Intime India Private Limited) is the registrar managing investor applications and allotment.
Financial Analysis of Tenneco Clean Air Ltd
Tenneco Clean Air Ltd has demonstrated steady financial performance in recent years. The company’s total income grew from Rs. 4,886.96 crore in FY23 to Rs. 5,537.39 crore in FY24, and then declined to Rs. 4,931.45 crore in FY25. For the quarter ended June 30, 2025, total income was recorded at Rs. 1,316.43 crore.
It reported a Profit After Tax of Rs. 168.09 crore for the quarter ended June 30, 2025. For the full years, the company’s PAT stood at Rs. 553.14 crore in FY25, Rs. 416.79 crore in FY24, and Rs. 381.04 crore in FY23, reflecting steady growth over the period.
Tenneco Clean Air Ltd vs Peers
- Tenneco Clean Air India Limited: The company has a basic and diluted EPS of Rs. 13.68 and a NAV of 31.1. Its RoNW is 46.65, indicating a relatively strong market valuation compared to its earnings.
- Bosch: Bosch reports a strong EPS of Rs. 683.25 and a NAV of 4682.16. With a P/E of 57.39 and RoNW of 15.58%, the company reflects a premium valuation and stable returns on net worth.
- Timken India: Timken India has an EPS of Rs. 59.48 and a NAV of 378.21. Its P/E ratio is 49.22, with a RoNW of 17%, showing healthy profitability and market confidence.
- SKF India: SKF India reports EPS of Rs. 114.5 and a NAV of 525.5. The P/E ratio is 19.21, and RoNW is 21.43%, suggesting strong returns relative to its share price.
- ZF Commercial Vehicle Control System India: The company has EPS of Rs. 242.9 and NAV of 1694.75. Its P/E ratio is 53.67 with RoNW of 15.35%, indicating high valuation with moderate returns.
- Sharda Motor Industries: Sharda Motor Industries posts EPS of Rs. 109.71 and NAV of 184.97. With a P/E of 9.67 and RoNW of 30.46%, it shows strong profitability relative to its market valuation.
- Gabriel India: Gabriel India has an EPS of Rs. 17.05 and a NAV of 82.38. Its P/E ratio is very high at 75.92 with RoNW of 22.42%, reflecting high market expectations.
- Uno Minda: The company reports Basic EPS of Rs. 16.42 and NAV of 95.99. P/E is 75.11 and RoNW is 18.36%, showing a premium valuation with decent returns.
- Sona BLW Precision Forgings: Sona BLW has EPS of Rs. 9.92 and NAV of 88.38. With a P/E of 14.76 and RoNW of 14.76%, it has moderate valuation and returns.
Tenneco Clean Air Strengths and Weaknesses
Strengths:
- Market-leading supplier of critical, highly engineered, and technology-intensive clean air, powertrain, and suspension solutions to leading Indian and global OEMs.
- Strategically diversified portfolio of proprietary products and solutions, well-positioned to capture market and industry trends.
- Innovation-focused approach, leveraging Tenneco Group’s global R&D initiatives to cross-deploy technologies for proprietary, modular, and customized products at competitive Indian price points.
- Flexible and automated manufacturing footprint with 12 strategically located plants, well-supported by a localised supply chain.
Weakness:
- Dependency on Group Entities: It relies on entities within the Tenneco Group for critical aspects of the operations, including licenses for brands and patented designs, technical know-how, procurement of certain parts and materials, and R&D support. Any adverse changes in the relationship, including the termination of the License Agreement, could materially impact the business, reputation, financial condition, and results of operations.
- Sector Concentration Risk: A significant portion of the revenue is derived from the passenger vehicle (PV) and commercial vehicle (CV) sectors in India, representing 81.35%, 83.44%, 82.04%, 83.87%, and 83.06% of revenue in Q1 FY2026, Q1 FY2025, and Fiscals 2025, 2024, and 2023, respectively. Any adverse changes in these sectors could materially affect the business, results of operations, and financial condition.
- Customer Concentration Risk: It is heavily dependent on the top ten customers, who contributed 80.57%, 82.32%, 81.54%, 83.92%, and 77.79% of revenue in Q1 FY2026, Q1 FY2025, and Fiscals 2025, 2024, and 2023, respectively. Loss of one or more of these customers could have a material adverse effect on the business, financial condition, and results of operations.
- Program Realization Risk: It may not be able to fully realize sales from awarded programs, as customer agreements do not guarantee firm volume commitments. Failure to achieve anticipated volumes could materially and adversely impact the financial condition and results of operations.
- Regulatory & Emission Standards Risk: The company’s business is highly influenced by government policies and regulations regarding emission standards. Delays or changes in the implementation of these standards may negatively impact the growth and profitability of the business.
Conclusion
Tenneco Clean Air Ltd’s IPO offers exposure to a strong, innovation-driven auto components player with solid profitability and steady growth. Backed by Tenneco Inc., it benefits from global expertise and a diversified product portfolio. However, as a pure offer for sale, it brings no fresh funds, and its reliance on group entities and key customers adds risk and which investors should carefully consider before investing.
Written by Sridhar J
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