Tenneco Clean Air IPO GMP Today: Listing Could Touch Rs 475 Per Share

The IPO of Tenneco Clean Air India Ltd, which is a subsidiary of Tenneco Group that is based in the US, will close today after it has been open for subscription since the 12th of November. Pricing for the IPO, which is between Rs 378 and Rs 397 per share, is completely from the sales of previous shares (OFS), and no new equity is being issued. Tenneco Mauritius Holdings Ltd, the selling shareholder, will receive the entire amount as proceeds and the company will not get any cash from the sale.

According to the data from BSE, on the second day of bidding the IPO was subscribed 2.93 times with inclusive of retail investors taking 1.44 times, non-institutional investors contributing 7.18 times and Qualified Institutional Buyers (QIBs) at 2.34 times.

The grey market premium (GMP) today is at Rs 78, which means that the potential listing price of the shares would be Rs 475 or approximately 19.65% higher than the upper price band of Rs 397. There is a continuous rise in grey market activity that has lasted for the past 12 sessions, with the premiums moving up and down between Re 0 and Rs 101, thus confirming the strong interest of the investors.

Tenneco Clean Air India offers technologically advanced and innovative solutions for clean air, powertrain systems, and advanced suspension systems, thus the company targets mainly the domestic OEMs and international exports. Tenneco's operations are organized into two major units:

Clean Air & Powertrain Solutions – Under the Champion brand the company designs and manufactures exhaust aftertreatment systems (catalytic converters, mufflers, exhaust pipes) and engine components like bearings, sealing systems, spark plugs, and ignition coils; the company supplies both OEMs and aftermarket segments.

Advanced Ride Technologies –Manufactures shock absorbers, struts, and complete advanced suspension systems under the Monroe brand, which are applicable for the vehicles with internal combustion engines as well as for electric vehicles.

In June 2025, Tenneco Clean Air has 12 factories in 7 states and 1 union territory, which are strategically placed near main automotive areas. These factories use advanced manufacturing practices to maintain the production flexibility, quality, and efficiency needed for both domestic and international supply chains.

In the first quarter of fiscal year 2026 (1QFY26), the company provided services to 101 customers, which included the top seven passenger vehicle (PV) original equipment manufacturers (OEMs) and the top five commercial vehicle OEMs in India, namely, M&M, Tata Motors, Ashok Leyland, Maruti Suzuki, VECV, Daimler India CV, John Deere, and Toyota Kirloskar Motor. Tenneco's wide range of products includes aftermarket and export products which help a lot in taking care of the risks caused by the fluctuations in the Indian automotive market.

Tenneco Clean Air’s growth strategy is to take advantage of stricter emissions standards, the growing premium and SUV market, and the transition to electric and hybrid vehicles. The company promotes localization and the Make in India initiative, using India as an export hub with global manufacturing standards. The company will also continue to conduct R&D, innovate products, and improve operational efficiency as its main growth avenues.

Investors have to consider the company's reliance on the parent group for licensing, patents, trademarks, and technical know-how. A change in these arrangements could have a significant impact on operations. Moreover, the firm's revenue is highly concentrated with its top 10 customers accounting for more than 80% of total income in recent years which exposes the firm to customer-specific risks.

The distribution of the IPO has been decided in such a manner that 50% is for QIBs, 35% is for retail investors and 15% is for non-institutional investors. The previously mentioned investors included the State Bank of India Mutual Fund, the ICICI Prudential Mutual Fund, the HDFC Mutual Fund, and the State Bank of India Life Insurance, who collectively committed Rs 1,080 crore for the public offer, among others.

To start with, SBICAP Securities took notice of the company’s leveraging of 5,000 patented innovations and 7,500 proprietary trademarks from the parent group and recommended purchasing the stock up to the maximum price level of Rs 397. ICICI Direct, too, suggested subscribing for the share citing the company’s robust fundamentals, attractive 30%+ return ratios, and attractive valuations (~29x P/E and ~19x EV/EBITDA for FY25).

The investors are keeping a close eye on the last day of the subscription with the sentiments prevailing in the market and the activities in the grey market indicating an excellent listing for Tenneco Clean Air India Ltd.