Tenneco Clean Air India Gears Up for ₹30,000 Crore IPO in November
Tenneco Clean Air India Ltd., a subsidiary of US-based auto parts manufacturer, is preparing for an IPO in November, aiming to raise ₹30,000 crore ($342 million). The emissions-control systems supplier is seeking a valuation of up to $2 billion. The IPO will be an Offer for Sale (OFS) by Tenneco Mauritius Holdings Ltd., with no new shares being issued. The offering is being managed by Axis Bank Ltd., JM Financial Ltd., HSBC Holdings Plc, and Citigroup Inc. This IPO comes amid robust activity in India's IPO market, with over ₹1.32 lakh crore raised in 2023.
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Tenneco Clean Air India Ltd., a subsidiary of the US-based auto parts manufacturer, is set to make its market debut with an initial public offering (IPO) in November. The emissions-control systems supplier is targeting to raise approximately ₹30,000 crore ($342 million) through this offering.
IPO Details
The company has initiated investor roadshows, seeking a valuation of up to $2 billion. Here are the key details of the upcoming IPO:
| Aspect | Details |
|---|---|
| Offering Type | Offer for Sale (OFS) |
| Selling Entity | Tenneco Mauritius Holdings Ltd. |
| Target Raise | ₹30,000 crore ($342 million) |
| Valuation Sought | Up to $2 billion |
| New Shares Issuance | None |
Market Context
Tenneco Clean Air India's IPO comes at a time when India's IPO market is showing robust activity:
- Over ₹1.32 lakh crore ($15 billion) raised through IPOs in 2023
- Record ₹1.85 lakh crore ($21 billion) raised in 2022
This trend indicates strong investor appetite for new listings in the Indian market, attracting global firms to tap into this liquidity.
Underwriters
The IPO is being managed by a consortium of leading financial institutions:
- Axis Bank Ltd.
- JM Financial Ltd.
- HSBC Holdings Plc (local unit)
- Citigroup Inc. (local unit)
Company Profile
Tenneco Clean Air India Ltd. specializes in emissions-control systems, a critical component in the automotive industry as global environmental regulations become increasingly stringent. The company's decision to go public could be seen as a strategic move to capitalize on the growing demand for clean air technologies in the automotive sector.
Market Implications
This IPO represents a significant development in India's auto components sector and highlights the country's growing attractiveness as a destination for global companies seeking to raise capital. The success of this offering could potentially pave the way for more international firms to consider listing their Indian subsidiaries on the country's stock exchanges.
Investors and market watchers will be closely monitoring this IPO, as it could provide insights into the valuation of auto component manufacturers in the current market environment and gauge investor sentiment towards the sector.
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