Tenneco Clean Air India Ltd is a subsidiary of Tenneco Inc., focused on manufacturing clean-air and emission-control systems, powertrain components and ride-performance products. It supplies major passenger and commercial vehicle manufacturers in India. The IPO is a full offer-for-sale, so the proceeds go to the selling shareholders, not the company.
Key details:
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Issue size: About ₹3,600 crore
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Price band: ₹378 to ₹397 per share
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Issue dates: 12 to 14 November 2025
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Likely listing: 19 November 2025 on BSE and NSE
Positives
Strong market position
The company has a solid share in clean-air systems for commercial vehicles and good presence in shock absorbers and struts for passenger vehicles.
Established OEM relationships
It supplies to several large auto manufacturers and has a wide manufacturing footprint across the country.
Improving margins
While revenue growth has been slow, profitability has improved. Margins have strengthened over the last few years.
Industry tailwinds
Stricter emission norms and continued demand for cleaner, efficient automotive systems support long-term relevance for its products.
Valuation appears reasonable
Based on the price band and recent financials, the valuation sits in a moderate range compared to peers in the auto-components sector.
Negatives
High customer concentration
A large share of revenue comes from a small group of OEMs, making the business vulnerable if any major client reduces orders.
IPO is entirely OFS
The company itself will not receive new funds, so expansion will rely on internal cash flows instead of fresh capital.
Slow revenue growth
The top line has grown only modestly in recent years, which may limit long-term compounding potential.
Raw-material exposure
Costs depend heavily on materials like steel. Any volatility can affect margins.
Cyclical industry risk
Demand depends on the auto sector, which moves in cycles and can face downturns during economic slow periods.
Quick View
If you like stable auto-component businesses with leadership in emission and ride-technology products, this IPO can be interesting. Just keep expectations balanced because it isn’t a fresh-capital growth story. It’s more about buying into an existing operation with steady but not explosive potential..
Disclaimer
The information provided here is for general understanding only and should not be treated as investment, financial or legal advice. IPO investments involve market risks, including potential loss of capital. Details such as valuations, financial performance, subscription data and market sentiment may change and should be verified from official documents like the RHP and exchanges’ disclosures.
Past performance of the company or the industry does not guarantee future results. You should evaluate your own financial situation, risk tolerance and investment horizon before making any decisions. Consider consulting a SEBI-registered financial advisor or another qualified professional who can provide guidance tailored to your personal needs.
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