Tenneco Clean Air, a significant entity within the Tenneco Group, serves as a global Tier I automotive component supplier based in the U.S. The company specializes in clean air, powertrain, and suspension solutions designed specifically for the Indian automotive market and for export. Its diverse product lineup caters to multiple vehicle categories, including passenger and commercial vehicles such as trucks, off-highway vehicles, and industrial applications, spanning generator sets and smaller commercial vehicles, along with two-wheeled and three-wheeled vehicles.
Recent insights from ICICI Direct Research suggest that Tenneco Clean Air is positioned for robust growth due to its leadership in clean air technologies and performance systems, backed by its established relationships with original equipment manufacturers (OEMs). There is an expectation of ongoing structural support in India's automotive ecosystem, which further bolsters the company's long-term growth trajectory.
Choice Equity Broking provided an evaluation of the company, noting its valuation at the upper end of the IPO price band reflects a P/E ratio of about 28.1x—considerably lower than its peers. The analysis indicated a promising growth rate of nearly 20% CAGR for Tenneco Clean Air’s net earnings, attributed to healthy profit margins and low debt-to-equity ratios. Additionally, increasing government initiatives promoting clean air technologies are favorably influencing the company's outlook.
The Tenneco Clean Air IPO experienced overwhelming investor interest, with subscriptions amounting to an astonishing 61.79 times. The IPO garnered bids for a total of 392 crore shares against the 6.34 crore shares available. Qualified institutional buyers demonstrated particularly strong demand, subscribing 174.78 times with bids totaling 316 crore shares against an allocation of only 1.81 crore shares. Non-institutional investors also showed high enthusiasm, with a subscription rate of 42 times. In contrast, retail investors participated at a lesser extent, recording a subscription of only 5.37 times.
As of now, the grey market premium (GMP) for Tenneco Clean Air shares stands at ₹125 per share, which indicates potential gains for investors at the time of listing. If this trend continues, shares are predicted to debut around ₹522, representing a premium of 31.5% above the IPO price of ₹397.
For those interested in checking the allotment status of the Tenneco Clean Air IPO, there are online platforms available, including the MUFG Intime and BSE websites, where investors can easily check their allotment status using their application number or PAN.