Tenneco Clean Air IPO Debut Hits Rs 505 on NSE, Soars 27% Above Issue

On Wednesday, Tenneco Clean Air had an excellent debut on the stock market, with its shares being priced at Rs 505 on the NSE at the start of the trading day, which indicated a jump of 27.20% compared to the IPO price of Rs 397. On the other hand, the stock got listed on the BSE at Rs 498, which was 25.44% higher than the issue price.

The listing was in accordance with the expectations set by the grey market. Prior to the listing, the Tenneco Clean Air IPO grey market premium (GMP) stood at Rs 104 per share, which pointed to a listing price of about Rs 501, or in other words, a gain of 26.20% from the IPO price.

The IPO of Tenneco Clean Air was open till November 14, and allotments were declared on November 17. The total amount of the issue was Rs 3,600 crores, which was completely comprises of the offer for sale with 9.07 crore shares. The per-share price range was fixed at Rs 378-Rs 397, with investors needing to apply for 37 shares at the very least, which would cost them Rs 14,689.

JM Financial Ltd. was the book-running lead manager, whereas MUFG Intime India Pvt. Ltd. was the registrar. Since it was an OFS issue, the entire amount went to the selling shareholders and not to the company.

The investors’ response was very positive and the total subscription reached 61.79 times on the last day. Initially, the demand was quite low, but it rose very quickly, leading to total bids of 392 crore shares compared to only 6.34 crore shares on offer. The biggest attention came from the Qualified Institutional Buyers (QIBs), who subscribed 174.78 times, whereas the non-institutional investors took their share 42 times. The retail investors’ participation was 5.37 times in their segment according to the exchange data.

Prior to the IPO, the company’s future were bright as the anchor investors showed they were convinced by granting Rs 1,080 crores on November 11, the day after the company's announcement about the IPO.