Tenneco Clean Air IPO Day 1: Issue booked 42% so far; Check GMP, issue details, review, key dates. Apply or not?

The initial public offering of Tenneco Clean Air India Ltd, part of the US-based Tenneco Group, opens for public subscription on November 12 and will conclude on November 14. Tenneco Clean Air IPO price band has been set at ₹378-397 per share.

Tenneco Clean Air IPO GMP today is ₹61. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Tenneco Clean Air India share price was indicated at ₹458 apiece, which is 15.37% higher than the IPO price of ₹397.

Tenneco Clean Air IPO raised ₹1,080 crore from anchor investors, just a day prior to the launch of its public offering. The anchor book attracted participation from 58 organizations, including SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, SBI Life Insurance, ICICI Prudential Life Insurance, Nomura Funds Ireland, Fidelity, BlackRock, Norway's Government Pension Fund Global, Abu Dhabi Investment Authority, and Goldman Sachs, as per a circular posted on the BSE's website.

The company has stated that 50% of the issue size is allocated for qualified institutional buyers, 35% for retail investors, and the remaining 15% for non-institutional investors. Additionally, investors have the option to bid for a minimum of 37 shares and in multiples of this number.

The promoters of Tenneco Clean Air include Tenneco Mauritius Holdings Ltd, Tenneco (Mauritius) Ltd, Federal-Mogul Investments BV, Federal-Mogul Pty LTD, and Tenneco LLC.

Tenneco Clean Air India specializes in manufacturing and supplying key, highly engineered, and technology-driven clean air, powertrain, and suspension solutions designed specifically for Indian original equipment manufacturers as well as export markets.

Tenneco Clean Air IPO review

As per ICICI Direct, supported by its robust leadership in clean-air and ride performance systems, along with enduring relationships with OEMs, Tenneco is well-equipped to take advantage of the current trends in India's automotive sector, with structural advantages promoting sustainable growth in the years ahead.

“We recommend Subscribe rating on Tenneco Clean Air India Ltd, given its robust business fundamentals, healthy 30%+ return ratios profile and reasonable valuations i.e. ~29x PE & ~19x EV/EBITDA on FY25 basis,” said the brokerage.

SBICAP Securities noted that the firm skillfully utilises the parent company’s 5,000 patents and 7,500 trademarks to create and develop products tailored for Indian OEMs and is poised to capitalise on the growing trend of premiumisation in the Indian automotive sector.

“At upper price band of ₹397, the issue is valued at FY25 P/E and EV/EBITDA multiple of 29.0x and 19.3x respectively. We recommend investors to SUBSCRIBE to the issue,” said the brokerage.

Tenneco Clean Air IPO subscription status

Tenneco Clean Air IPO subscription status was at 42% so far, on Day 2. The retail segment saw a subscription rate of 36%, while the Non-Institutional Investors (NII) category received 1.11 times of bids. The Qualified Institutional Buyers (QIBs) portion received 1% bids.

Tenneco Clean Air IPO details

Tenneco Clean Air IPO comprises solely of an Offer for Sale (OFS) from the promoter, Tenneco Mauritius Holdings Ltd, without any new equity being issued. As per the draft documents submitted in June, the company has increased its issue size from the initially planned ₹3,000 crore to ₹3,600 crore.

Given that the offering is completely an OFS, the company will not collect any funds from the IPO; rather, all the proceeds will go to the selling shareholder.

The aim of the IPO is to reap the advantages of being a publicly listed company, as stated in the documents.

The merchant bankers managing the Tenneco Clean Air IPO include JM Financial, Citigroup Global Markets India, Axis Capital, and HSBC Securities and Capital Markets (India). MUFG Intime India Pvt Ltd serves as the registrar for the issue.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.