Tenneco Clean Air India Gears Up for ₹30 Billion IPO via Promoter Exit

IPO Update: Leading auto component manufacturer Tenneco Clean Air India Ltd filed its Draft Red Herring Prospectus (DRHP) with SEBI to raise an initial public offering of ₹30 billion. The entire issue shall be an Offer for Sale (OFS) by the promoter, Tenneco Mauritius Holdings Ltd, a strategic partial exit without the issue of fresh equity.

Important Developments:

The IPO will be issued in the form of equity shares by Tenneco Mauritius Holdings without proceeds to the company.

The objective is to retain listing benefits and provide liquidity to the promoter.

The equity shares are to be listed on BSE and NSE.

JM Financial, Citigroup, Axis Capital, and HSBC Securities have been appointed book-running lead managers.

Business Overview:

Tenneco Clean Air India operates 12 plants in India.

It is a worldwide powertrain, suspension, and clean air specialist to the world's top OEMs in the passenger car and commercial vehicle segments.

There are 119 customers for the company, all the top seven passenger vehicle OEMs, and all the top five commercial truck OEMs in India.

It led the market in commercial truck clean air solutions with 60% and off-highway vehicles with 42%.

Financial Highlights:

Profit after tax in FY25 grew 32.7% to ₹553.1 crore on a 10.6% decline in revenue to ₹4,890.4 crore.

EBITDA margins rose substantially, indicative of operating efficiency.

The company's net worth was ₹12,550.93 crore as of FY25.

Promoter Exit Information:

Tenneco Mauritius Holdings also holds 85.43% of the equity of the company.

The OFS will entail offloading part of the 344.81 million shares of its stock.

The mean acquisition price of these shares is ₹138.14.

Market Positioning:

Tenneco Clean Air India is owned by US-based Tenneco Group that has the brands Monroe, Champion, and Walker. It competes with listed counterparts like Bosch, Uno Minda, Gabriel India, and Sharda Motor Industries.

The IPO should be accompanied by institutional and retail demand, consistent with the increasing demand for multibackstopped India listings.

Sources: Moneycontrol, Business Standard, HDFC Sky, Autocar Professional, Rediff Business News