The Indian capital markets are witnessing yet another strong IPO in the auto components space. Tenneco Clean Air India, a major player in clean-air, powertrain, and suspension solutions for auto original equipment makers, is all set to make its market debut. For investors, this listing is noteworthy because it offers exposure to India’s auto-component manufacturing value chain-but as always, timing, business fundamentals, valuation, and risks will matter. In this post, we bring together the key details you need to know before considering participation. also you can about PhysicsWallah IPO 2025: You Need to Know
Who is Tenneco Clean Air India?
Tenneco Clean Air India is the Indian subsidiary of the US-based global Tenneco Inc. Group, a leading automotive component supplier.
Its business portfolio involves designing, manufacturing, and supplying:
- Clean-air solutions (emissions control systems, exhaust systems)
- Powertrain & suspension components
- Both for local original equipment manufacturers in India and for exports.
Tenneco Clean Air has several manufacturing facilities in India, as indicated, 12 plants across India, and a client list including many of the major vehicle manufacturers. The firm has strong market shares in various segments, such as commercial vehicle clean-air systems and off-highway vehicle components. you can read about Emmvee Photovoltaic IPO
With the auto industry facing increasing emissions regulation in both passenger and commercial vehicles, and the impetus towards localisation of components in India, Tenneco Clean Air India is well-positioned to gain from the secular tailwinds in auto-component manufacturing. you can read about Groww upcoming IPO – And What Is the Valuation?
Tenneco Clean Air IPO Structure & Key Timings
The following is the key information about the IPO of Tenneco Clean Air India:
- The IPO opens for subscription on 12 November 2025 and closes on 14 November 2025.
- The price band is fixed at ₹378-₹397 per equity share of face value ₹10.
- Lot size for retail investors: 37 shares (at the upper band ₹397 × 37 ≈ ₹14,689).
- Issue size: Approximately ₹3,600 crore (₹36 billion) through an Offer For Sale (OFS) by the promoter; no fresh issue component means the company does not receive the proceeds.
- Allotment and listing schedule: The basis of allotment is expected on ~17 Nov, refunds and credit on ~18 Nov. Further, the company shall get listed on the Bombay Stock Exchange & National Stock Exchange of India, both on 19 November 2025.
Reservation of shares: In line with regulatory norms, at least 50% to QIBs, at least 35% to retail investors, and at least 15% Non-Institutional Investors (NIIs). you can read about When is Lenskart IPO Coming?
Financial Performance & Valuation Snapshot
Financials:
- The company reported a PAT of ₹553.14 crore for FY25, up from ₹416.79 crore for FY24.
- Revenue for the year (FY25) is at ₹4,890.4 crore, down 10.6% from ₹5,467.6 crore in FY24.
- Improvements in margin: EBITDA margin for FY25 improved to 16.67% from 11.19% in FY24.
What these numbers mean: Growth in profitability despite a decline in revenue implies cost and operational discipline, but a fall in revenue also underlines caution in the demand environment in the automotive sector.
Valuation:
Since this is an OFS issue and no fresh shares are being issued, the implied valuation would depend upon how much stake is sold and at what price. As per reports, the grey‐market premium stands at 24% over the upper band of ₹397, implying optimism for the same. At the issue size of ₹3,600 crore and given the price band, the listing valuation would be in the ballpark of ₹16,000+ crore or more, depending on the remaining shares post-sale, at the upper band. you can read about Pine labs IPO details 2025 Everything You Need to Know Tenneco Clean Air.
Tenneco Clean Air key question for investors, therefore, becomes whether the company’s growth expectation, margin improvement, and structural positioning justify the implied valuation against headwinds in current demand.
Strengths, Growth Drivers & What Sets It Apart
Strengths:
- Strong OEM client base: Serves top passenger vehicle OEMs + major commercial vehicle manufacturers in India.
- Deep manufacturing footprint in India: 12 plants across key automotive hubs, enabling supply chain strength.
- Technologically strong: Clean-air solutions and emission control components are technology-intensive and raise barriers to entry.
- Regulatory and structural tailwinds: include India’s auto emission norms tightening, localisation push for components, EV transition-even though this is a mixed driver-but all are favorable to companies in the clean-air/components space.
Growth Drivers:
- Greater demand from OEMs for advanced emission control and clean-air systems.
- Potential export growth: The India unit may supply global markets.
- Focus on margin improvement and value-added components, rather than commodity parts.
- Leading players will likely benefit from market consolidation in auto-components.
These features make Tenneco Clean Air India a credible entrant for investors looking at manufacturing, auto-components, and technology-linked growth stories in India. PhysicsWallah IPO 2025: You Need to Know
Tenneco Clean Air Key Risks & What Investors Should Watch
- Revenue Cyclicality: Auto-component business is susceptible to the cyclicality in the vehicle industry, macro down-cycles, and changes in OEM demand. A decline in revenue in FY25 indicates that the company is exposed to such cycles.
- Customer concentration risk: High dependence on large OEMs would imply revenue risk from any shifting of sourcing by large customers or a reduction in volumes.
- EV transition risk: to the extent that electric vehicles grow, some of the traditionally emission/suspension/powertrain-oriented components could face structural demand risk. Clean-air solutions may remain pertinent, but the mix of demand could shift.
- Valuation pressure: High expectations are baked in via GMP and valuation. Investor returns will need strong execution; the slightest shortfall in growth or margin improvement may disappoint.
- No fresh capital being raised: Since this is purely an OFS, the company in itself will not receive fresh funds for expansion, and any benefit to the shareholders will accrue depending on post-listing improvement rather than immediate capital infusion.
- Business Standard Execution & margin risk: It’s great that margins keep improving, but it’s all about sustaining those improvements and growing revenues. Any delays, raw material cost inflation, or supply chain problems could affect margins.
How Investors Can Participate & Things to Consider
In case you are considering applying for the IPO of Tenneco Clean Air India, here are the steps/information:
- Ensure that your demat account and ASBA/UPI linking are in place well in advance of the subscription.
- Lot size is 37 shares, and the minimum investment would be around ₹14,689 at the upper band.
- Determine whether you are applying for a short-term listing gain or a long-term hold. Considering the valuation and structural play, a longer-term horizon may be suitable.
- Read the RHP/offering document, especially the risk factors, the fact that this is an OFS, and hence the company will not receive funds, business outlook, and margin assumptions before applying.
- After listing, monitor
- OEM ordering flows and vehicle industry trends that drive demand.
- Improvement in margin and cost management
- Growth in exports and new customer acquisition
- Impact of EV transition on demand mix.
Conclusion
The Tenneco Clean Air India IPO presents an exciting opportunity to participate in the Indian auto-components manufacturing industry, brought about by a global Tier-I player with excellent credentials, technology, and clientele. Priced in a band of ₹378-397, the lot size is 37 shares, and the issue size is approximately ₹3,600 crore. It will be listed on 12-14 November 2025. That said, investors must recognize that revenue headwinds exist, and much depends on execution, margin improvement, and how the broader auto industry performs-including the EV transition. The fact that the offer is an OFS means benefits to shareholders will accrue from improved performance in the future rather than immediate capital infusion. This could be worth considering for the patient investor who buys into the long-term structural story of manufacturing and auto-components, but only after due diligence and clear alignment with risk tolerance and investment horizon.