Tenneco Clean Air IPO: Issue receives tepid response from investors on Day 01, subscribed 0.44 times

The initial public offering (IPO) of Tenneco Clean Air received a tepid response from investors, with the issue subscribed 44% on Day 1. The retail portion was subscribed 37%, while the Non-Institutional Investors (NII) segment was fully booked at 1.16%. The Qualified Institutional Buyers (QIB) category has not yet opened for bidding.

According to Canara Bank Securities, Tenneco holds a strong market position with a 57% share in commercial trucks, 68% in off-highway vehicles, and 52% in passenger vehicle (PV) shock absorbers, supported by long-standing partnerships with OEMs and access to global R&D resources.

While the company relies on its parent for technology and intellectual property, paying a 2.5% royalty, which poses some renewal risk, it continues to maintain robust fundamentals, including a ₹553 crore profit after tax (PAT), an EBITDA margin of 16.67%, 12 manufacturing plants, and 86% domestic sourcing.

At the upper price band of ₹397 per share, valuations appear attractive with a P/E of 29x and P/B of 12.7x, compared with peers trading at 48x and 8.5x, respectively.

Domestic brokerage firm Aditya Birla Money Limited, in its note, highlighted Tenneco’s long-term growth prospects, citing the company’s advantages from increasingly stringent emission norms and the accelerating trend of premiumization. The brokerage noted that Tenneco continues to leverage the capabilities and expertise of its parent company, along with strong relationships with OEMs.

Additionally, it pointed out the company’s strong balance sheet, with a net debt-free status, robust cash flows, and improving EBITDA margins. The brokerage also underscored Tenneco’s focus on premium product portfolio expansion and localization efforts, which it believes will help the company sustain a strong growth trajectory over the next few years.

At the upper price band, Tenneco is valued at approximately 29x FY25 P/E and 19x EV/EBITDA, which Aditya Birla Money considers reasonable.

Tenneco Clean Air IPO Day 1 LIVE: Tenneco Clean Air IPO has been subscribed 27% so far till 2:40 PM on Wednesday, the first day of the bidding process, NSE data showed. The public issue is booked 26% in the Retail Individual Investors (RIIs) category, and 64% in the Non Institutional Investors (NII) segment. The Qualified Institutional Buyers (QIBs) are yet to bid for the IPO.

Tenneco Clean Air IPO Day 1 LIVE: Tenneco Clean Air India is part of Tenneco Group, US headquartered, global Tier I automotive component supplier, manufacturing critical, highly engineered and technology intensive clean air, powertrain and suspension solutions tailored for Indian OEMs and export markets.

It is the largest supplier of shock absorbers and struts to Indian PV OEMs, with a market share of 52% (in revenue terms). It is the largest supplier of Clean Air Solutions to Indian Commercial Trucks OEMs, with a market share of 57% (in revenue terms).

Tenneco Clean Air IPO Day 1 LIVE: Ahead of the IPO opening, Tenneco Clean Air India raised ₹1079.99 crore from 58 anchor investors by allotting 27,204,030 equity shares in aggregate, at the upper price band of ₹397 per share.

Tenneco Clean Air IPO Day 1 LIVE: Tenneco Clean Air IPO has been subscribed 17% so far till 12:50 PM on Wednesday, the first day of the bidding process, NSE data showed. The public issue is booked 18% in the Retail Individual Investors (RIIs) category, and 39% in the Non Institutional Investors (NII) segment. The Qualified Institutional Buyers (QIBs) are yet to bid for the IPO.

Tenneco Clean Air IPO Day 1 LIVE: JM Financial Ltd. is the book running lead manager and MUFG Intime India Pvt. Ltd. is Tenneco Clean Air IPO registrar.

Tenneco Clean Air IPO Day 1 LIVE: Tenneco Clean Air shares are commanding a strong grey market premium (GMP). Market experts said that Tenneco Clean Air IPO GMP today is ₹61 per share. This indicates that in the grey market, Tenneco Clean Air shares are trading at a premium of 15.4% at ₹458 apiece, than their issue price of ₹397 per share.

Tenneco Clean Air IPO Day 1 LIVE: Tenneco Clean Air IPO has been subscribed 8% so far till 11:05 AM on Wednesday, the first day of the bidding process, NSE data showed. The public issue is booked 8% in the Retail Individual Investors (RIIs) category, and 16% in the Non Institutional Investors (NII) segment. The Qualified Institutional Buyers (QIBs) are yet to bid for the IPO.

Tenneco Clean Air IPO Day 1 LIVE: Tenneco Clean Air IPO price band is set at ₹378 to ₹397 per share. The company aims to raise ₹3,600 crore from the book-building issue which is entirely an offer for sale (OFS) of 9.07 crore equity shares.

Tenneco Clean Air IPO LIVE: Tenneco Clean Air India IPO opened for public subscription on November 12 and will close on November 14. The IPO allotment date is November 17, while the IPO listing date is November 19. Tenneco Clean Air India shares will be listed on BSE and NSE.

Tenneco Clean Air IPO LIVE: The initial public offering (IPO) of Tenneco Clean Air India Ltd, a subsidiary of Tenneco Inc., opened for public subscription today, November 12, to raise ₹3,600 crore from the primary issue.