Tenneco Clean Air India, a subsidiary of the US-based Tenneco Group, is gearing up for its Initial Public Offering (IPO) in the Indian market. The automotive component manufacturer specializing in clean air and powertrain systems is set to open its subscription on November 12, 2023. Here's what investors need to know about this upcoming IPO:

IPO Details

Grey Market Premium

The grey market is showing a premium of Rs 61 for Tenneco Clean Air India shares, indicating a potential listing price of Rs 458 per share. However, investors should note that grey market premiums are unofficial and subject to change.

Company Performance

Tenneco Clean Air India has reported positive financial results in its recent quarterly report:

Key Points for Investors

1. Business Focus: The company manufactures clean air and powertrain systems for the automotive industry, positioning itself in the growing clean technology sector.

2. Market Sentiment: The positive grey market premium suggests investor interest, but it's crucial to conduct thorough research before investing.

3. Offer Structure: The IPO is entirely an offer for sale, meaning the proceeds will go to the selling shareholders rather than the company.

4. Listing Timeline: With a quick turnaround, the shares are expected to list on November 19, just five days after the subscription closes.

IPO Management

• Book Running Lead Manager: JM Financial
• Registrar: MUFG Intime India

Investors interested in the automotive and clean technology sectors may find Tenneco Clean Air India's IPO an opportunity worth exploring. However, as with any investment decision, it's advisable to review the company's Red Herring Prospectus and consult with financial advisors to assess the suitability of this investment in line with individual financial goals and risk appetite.

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.