Tenneco Clean Air IPO Skyrockets 27% on Debut, Investors Take Notice

Tenneco Clean Air India today entered the stock market and simultaneously got listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). On the NSE, the shares opened at Rs 505, which was a 27% increase over the issue price of Rs 397. On the BSE, the stock started at Rs 398, which is a 25.44% increase over the issue price.

The initial public offering (IPO) was wholesale book-built offer-for-sale arranged for Rs 3,600 crores, and a total of 9.07 crore shares were offered. The bidding period lasted from November 12 to November 14 and resulted in the issue receiving bids for 3.92 billion shares, equating to a subscription of 58.83 times. The allocation was completed on November 18, and the shares were transferred to the investors' Demat accounts on the same day.

The book-running lead manager was JM Financial, while MUFG Intime India was responsible for registrar services. The day before the opening of the IPO, Rs 1,080 crore was raised from anchor investors.

Tenneco Clean Air shares were expected to trade around Rs 514 in the grey market before listing, evidencing a grey market premium of about 30% over the upper price of Rs 397. However, analysts warn that the grey market prices simply show a trend and are not good indicators of the official market valuations at that time.

Tenneco Clean Air is a company with a very strong position in the Indian auto components sector. The market shares it commands are impressive: 57% in clean air solutions for commercial trucks, and 52% in passenger vehicle suspension systems. It manufactures the following products, which are required by vehicles to comply with the stringent emission norms: diesel particulate filters (DPFs), diesel oxidation catalysts (DOCs), catalytic converters, mufflers, and exhaust pipes. These standards include Bharat 6, Euro 6d, and China 6.

The corporation has turned over a new leaf and now operates a total of 12 automated manufacturing plants that are located in various parts of India and have a capacity of more than 80%. Tenneco has also got two R&D centers which are in co-operation with Tenneco's worldwide network of 39 facilities. The infrastructure that Tenneco has in place is such that it can deliver products to the domestic and international markets in a very effective way.

For the fiscal year 2025, Tenneco Clean Air India disclosed Rs 4,890 crore as its revenue, a net profit of Rs 553 crore, and an EBITDA margin of 16.67%. The firm has a net debt-free balance sheet, and its equities are producing a return of 42.65% while capitals are yielding a return of 56.78% which is very impressive.

The experts in the industry are pointing out the increasing penetration of electric vehicles (EVs) and growing acceptance of SUVs as the main reasons for the increase in content-per-vehicle. It is projected that EVs will account for 15-20% of passenger car sales by FY30 and this will be a good opportunity for suppliers of suspension and emission-control components. Analysts, however, caution that the sector is still characterized by cyclicality and raw material costs are still erratic, but Tenneco’s leadership position, technology integration with global operations will be one of the factors for its growth in the long run.

Geojit Securities gave a “Subscribe” rating to the IPO because they believe that the valuations are quite attractive and the tightening of emissions regulation together with the premiumization trends will be the supportive factors. Deven Choksey Research pointed out Tenneco's excellent partnerships with the OEMs, its absolute dominance in the market, and its great flexibility of operations as the strengths through which the company can emerge victorious in the Indian auto components sector.

Post listing, there were fluctuations in the share price during the initial trading period. The share was trading on BSE at the price of Rs 493.45 which was a decrease of 0.91% and on NSE it was quoted at Rs 494.20 which was a drop of 2.14%. The share price on NSE later soared to Rs 510.70.

Retail investors were supposed to apply for the minimum of 37 shares where the total value was at the upper price band Rs 14,689. Small high-net-worth investors on the other hand were allowed to apply for a maximum of 518 shares and the high-net-worth investors could bid for 2,553 shares based on the category limits.

Tenneco Clean Air India IPO: Key Facts

Price Band: Rs 378–397 per share

IPO Dates: 12 Nov-14 Nov, 2025

Allotment Date: 18 Nov, 2025

Listing Date: 19 Nov, 2025

Offer Size: Rs 3,600 crores (9.07 million shares)