Tenneco Clean Air India Ltd, a subsidiary of the US-based Tenneco Group, is set to make its market debut with a substantial Initial Public Offering (IPO) on November 12. The company, which specializes in manufacturing and supplying engineered clean air, powertrain, and suspension solutions for Indian OEMs and export markets, has increased its issue size from the initially planned Rs 3,000 crore to Rs 3,600 crore.

IPO Details

Key Points

• The IPO is structured entirely as an Offer for Sale (OFS) by the promoter, Tenneco Mauritius Holdings Ltd.
• As it's a complete OFS, Tenneco Clean Air India will not receive any proceeds from the issue.
• The company has increased the issue size by Rs 600 crore from its initial plan.

Business Overview

Tenneco Clean Air India Ltd operates in the automotive components sector, focusing on:

• Engineered clean air solutions
• Powertrain products
• Suspension solutions

The company caters to both Indian Original Equipment Manufacturers (OEMs) and export markets, positioning itself as a significant player in the automotive supply chain.

IPO Management

The public offering is being managed by a consortium of financial institutions:

• JM Financial
• Citigroup Global Markets India
• Axis Capital
• HSBC Securities and Capital Markets (India) Private Limited

Market Implications

This IPO marks a significant event in the Indian capital markets, particularly in the automotive and clean technology sectors. The substantial size of the offering, at Rs 3,600 crore, indicates strong investor interest and the company's confidence in market conditions.

For potential investors, this IPO presents an opportunity to invest in a company at the intersection of automotive technology and environmental solutions, two sectors that are gaining increasing importance in the global market landscape.

As always, investors are advised to carefully review the company's prospectus and consult with financial advisors before making investment decisions.

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:

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.