Tenneco Clean Air India IPO

About Tenneco Clean Air IPO

The IPO of Tenneco Clean Air comprises only an offer for sale. There is no fresh issue in this IPO. The offer for sale aggregates up to ₹3600 crores. It’s a 100% book-built issue. The price band is ₹378 to ₹397 per share. The lot size of shares in this IPO is 37.

Tenneco Clean Air IPO opens on November 12, 2025 and closes on November 14, 2025. The listing date is on November 19, 2025 and the allotment date is on November 17, 2025. The credit of shares to the Demat account will take place on November 18, 2025, while the initiation of refund will take place on November 18, 2025.

Tenneco Clean Air is a part of the Tenneco Group, a U.S. headquartered key global tier I automotive component supplier. It manufactures and supplies critical, highly engineered and technology intensive clean air, powertrain and suspension solutions tailored for Indian OEMs and export markets.

Objectives of Tenneco Clean Air IPO

Tenneco Clean Air will not receive any proceeds from the offer and all the offer proceeds will be received by the promoter selling shareholder after deduction of offer related expenses and relevant taxes thereon, to be borne by the promoter selling shareholder.

Industry Outlook

Auto component production (which includes sales to OEMs, exports and the replacement market) has increased at 8.7% CAGR to ₹7881 billion in fiscal 2024 from ₹5196 billion in fiscal 2019. While domestic sales are more volatile due to various factors such as regulations, fuel prices, economic cycles, etc. that impact short-term demand, exports and the aftermarket help buffer overall growth in auto component production from similar fluctuations.

Auto component exports grew at a strong 11% CAGR during fiscals 2019-2024. Even during fiscals 2017-2020, exports increased to a healthy 11% CAGR. There was a contraction in fiscal 2021 amid the pandemic and related restrictions.

Company Information

Tenneco Clean Air is a part of the Tenneco Group, a U.S. headquartered key global tier I automotive component supplier. The company manufactures and supplies critical, highly engineered and technology intensive clean air, powertrain and suspension solutions tailored for Indian OEMs and export markets.

Its customer base spans across OEMs who use its products in: (i) passenger vehicles (PVs), (ii) commercial vehicles (CVs), which comprises commercial trucks (CTs) and off-highway vehicles (OHs), and (iii) industrial and other applications, which comprises generator sets, small commercial vehicles with gross vehicle weight of less than 3.5 tons, two wheelers and three wheelers. It also sells to the aftermarket primarily through Motocare India (Motocare), a subsidiary of Tenneco LLC and its group company.

Strengths of Tenneco Clean Air

• 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 aided by its ability to leverage Tenneco Group’s global R&D initiatives to cross-deploy global technologies for proprietary, modular and customised products at Indian price points
• Flexible and automated manufacturing footprint of 12 strategically located plants well-supported by a localised supply chain
• Strong financial performance supported by growth, profitability and efficient use of capital
• Qualified and experienced board of directors and management team supported by skilled work force

Risks of Tenneco Clean Air

• Any adverse changes in passenger vehicles and commercial vehicles sectors in India could adversely impact business, results of operations and financial condition
• If one or more of the top customers chooses not to source products from the company, its business, financial condition and results of operations may be adversely affected
• Delays in the implementation of emission standards may affect the growth of business
• Any volatility in the prices of raw materials may adversely impact business, results of operations and financial condition
• Any adverse change in its relationship, including the termination of its license agreement, could have an adverse impact on business
• The company cannot assure that it could not have achieved more favorable terms had such transactions not been entered into with related parties, which may adversely affect its business
• It may not be successful in implementing its growth strategy which could have an adverse impact on business
• Interruptions in the supply of raw materials and components could adversely affect its ability to manufacture products
• Exposure to international supply chain risks
• Changes in international trade policies, geopolitics and trade tariffs, export controls, economic or trade sanctions may materially and adversely affect business

Anchor Investor Bidding Date

Anchor portion of the IPO opens for bidding on November 11, 2025.

IPO Registrar and Book Running Lead Managers

• IPO Registrar: MUFG Intime India
• Book Running Lead Managers: JM Financial, Citigroup Global Markets India, Axis Capital and HSBC Securities and Capital Markets (India)

Business Model

Tenneco Clean Air operates two business divisions, namely:

• Clean air and powertrain solutions
• Advanced ride technologies

The clean air and powertrain solutions division comprises:

➔ Clean air solutions, where it designs, manufactures and sells exhaust after treatment systems, such as catalytic converters, mufflers and exhaust pipes to OEMs
➔ Powertrain Solutions, where it designs, manufactures and sell engine bearings, sealing systems and ignition products

The Advanced Ride Technologies division designs, manufactures and sells shock absorbers, struts and advanced suspension systems under the Monroe brand to OEMs and the aftermarket (Advanced Ride Technologies).

Tenneco Clean Air India Company Growth Trajectory

Tenneco Clean Air believes its track record of growth, profitability and efficient use of capital positions it well for continued success and underscores its commitment to delivering value to its stakeholders. Over the past three fiscals, the company has experienced growth and improved its margins.

Its revenue from operations increased from ₹4827.368 crores in FY 23 to ₹4890.430 crores in FY 25 while its restated profit for the year increased from ₹381.043 crores in fiscal 2023 to ₹416.787 crores in fiscal 2024 and ₹553.143 crores in fiscal 2025, representing a CAGR of 20.48%, evidencing its focus on profitable growth and continual improvement. Its PAT margin (basis revenue from operations) increased from 7.89% in fiscal 2023 to 11.31% in fiscal 2025.

Tenneco Clean Air India Market Position

Tenneco Clean Air is the largest supplier of clean air solutions to Indian CT OEMs, with a market share of 60%. It’s among the top two suppliers of clean air solutions to Indian OH OEMs (excluding tractors), with a market share of 42% and are among the top four suppliers of clean air solutions to Indian PV OEMs, with a market share of 20%.

The company is also the largest supplier of shock absorbers and struts to Indian PV OEMs, with a market share of 48%. In fiscal 2025, the company served 119 customers including all top seven PV OEMs in India and all top five CT OEMs in India.

How to Apply for the Tenneco Clean Air IPO?

To apply for this IPO:

• Log in to your Kotak Neo Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
  
• Specify IPO details: Enter the number of lots and the price you wish to apply for.
  
• Enter UPI ID: After entering your UPI ID, click submit. This will place your bid with the exchange.
  
• Mandate Notification: Your UPI app will receive a mandate notification to block funds.
  
• Approve Request: Your funds will be blocked once you approve the mandate request on your UPI.
  

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