IPO Update
Tenneco Clean Air India Ltd – Mainboard IPO
A concise look at the company’s financials, key ratios, IPO terms, valuation, and how ProStocks clients can apply using the BIDS option on mobile and web.
Financial Snapshot (FY23–FY25)
Tenneco Clean Air India Ltd has reported stable revenues with improving profitability and strong return ratios over the last three financial years.
Key Financials (₹ crore)
| Particulars |
FY25 |
FY24 |
FY23 |
| Net Revenues |
4,890.43 |
5,467.61 |
4,827.37 |
| Sales Growth (%) |
-10.56 |
13.26 |
— |
| Profit After Tax (PAT) |
552.06 |
416.79 |
381.08 |
| PAT Margin (%) |
11.29 |
7.62 |
7.89 |
| Total Equity |
1,609.97 |
980.02 |
1,208.04 |
| Total Assets |
2,831.58 |
2,136.26 |
2,429.65 |
| EPS (₹) |
13.68 |
8.90 |
7.58 |
Important Ratios (FY25)
| Ratio |
FY25 |
Comment |
| Return on Equity (ROE) |
34.29% |
Strong – efficient use of shareholder capital. |
| Return on Assets (ROA) |
19.50% |
Healthy – assets generating attractive returns. |
| Asset Turnover |
1.73x |
Indicates efficient churning of the asset base. |
| PAT Margin |
11.29% |
Margins have improved versus previous years. |
| Sales Growth |
-10.56% |
FY25 saw a revenue decline after FY24 spike. |
PAT up over 44% in 2 years
ROE consistently above 30%
Improving profit margins
Efficient asset utilisation
About Tenneco Clean Air India Ltd
Tenneco Clean Air India Ltd is the Indian subsidiary of US-based Tenneco Inc, a global leader in the manufacture of clean air and powertrain products for automotive applications.
In India, the company focuses largely on emission control technologies for light commercial vehicles (LCVs) and commercial vehicles (CVs). Its product portfolio includes:
- Catalytic converters
- Diesel particulate filters (DPFs)
- Mufflers
- Exhaust pipes
These products help Indian automotive OEMs and vehicles meet Bharat Stage VI emission norms. Tenneco Clean Air India Ltd operates
twelve manufacturing facilities across India and is supported by a strong domestic supply chain.
The company also has an Advanced Ride Technologies (ART) vertical, which manufactures shock absorbers, struts and advanced suspension systems, giving it a presence across clean air and ride performance solutions.
The IPO will be an entirely Offer for Sale (OFS) by the parent company, with no fresh issue component. Shares will be sold by the parent through
Tenneco Mauritius Holdings Ltd. The issue is being lead-managed by
JM Financial, Citigroup Global, Axis Capital and HSBC Securities, while
MUFG Intime India Private Ltd will act as the registrar.
The promoters of the company are Tenneco Mauritius Holdings Ltd, Tenneco (Mauritius) Ltd, Federal Mogul Investments BV, Federal Mogul Pty Ltd and Tenneco LLC.
IPO Highlights
| IPO Open |
Wednesday, 12 November 2025 |
| IPO Close |
Friday, 14 November 2025 |
| Price Band |
₹378 – ₹397 per share |
| Face Value |
₹10 per share |
| Issue Type |
100% Offer for Sale (OFS) – no fresh issue |
| OFS Size |
9,38,70,696 shares (938.71 lakh shares) |
| Issue Size (at upper band) |
₹3,726.67 crore (at ₹397 per share) |
| Listing |
NSE & BSE – Mainboard |
| Anchor Book |
Opens one working day prior to IPO opening |
How to apply via ProStocks:
Clients can apply for the IPO directly from the
“IPO” button under the “BIDS” option in their ProStocks
Mobile app or web-based login. Investors can also apply via ASBA through their internet banking with authorised SCSB banks.
IPO Timeline
| Event |
Date (Tentative) |
| IPO Opens |
Wednesday, 12 November 2025 |
| IPO Closes |
Friday, 14 November 2025 |
| Basis of Allotment |
Monday, 17 November 2025 |
| Initiation of Refunds to Non-Allottees |
Tuesday, 18 November 2025 |
| Credit of Shares to Demat |
Tuesday, 18 November 2025 |
| Listing on NSE & BSE |
Wednesday, 19 November 2025 |
Investor Allocation
| Category |
Shares |
% of Issue |
| Reservation for Employees |
Nil |
Not Applicable |
| Anchor Investors |
2,72,04,030 |
28.98% |
| QIB |
1,90,47,617 |
20.29% |
| NII (HNI) |
1,42,85,715 |
15.22% |
| Retail |
3,33,33,334 |
35.51% |
| Total |
9,38,70,696 |
100.00% |
Note: The anchor portion is carved out of the QIB quota and QIB availability in the IPO is reduced proportionately. Final numbers may vary marginally from initial announcements.
Lot Size Details
(1 lot = 37 shares)
| Application |
Lots |
Shares |
Amount @ ₹397 |
| Retail – Minimum |
1 |
37 |
₹14,689 |
| Retail – Maximum |
13 |
481 |
₹1,90,957 |
| S-HNI – Minimum |
14 |
518 |
₹2,05,646 |
| S-HNI – Maximum |
68 |
2,516 |
₹9,98,852 |
| B-HNI – Minimum |
69 |
2,553 |
₹10,13,541 |
There is no upper investment limit for B-HNI or QIB categories.
Valuation & Summary View
At the upper price band of ₹397 and latest EPS of ₹13.68, the IPO is valued at a
price-to-earnings (P/E) multiple of approximately 29x. For specialized auto-component manufacturers in India, such valuations are broadly in line with sector peers.
The company also benefits from robust EBITDA margins (around 16.7% in the latest year), aided by lower input costs and operating efficiencies. With emission norms tightening under Bharat Stage VI and beyond, Tenneco Clean Air India Ltd is well-placed to benefit from sustained demand for clean air and emission-control products.
Key Positives
- Strong ROE and ROA with improving profit margins.
- Leadership position in clean air products with an estimated 57% market share.
- Diversified product basket across clean air, powertrain solutions and advanced ride technologies.
- Twelve manufacturing facilities and a domestic supply chain supporting localisation.
- Subsidiary of a global parent, which can command a valuation premium.
Investors should look at Tenneco Clean Air India Ltd as a play on stricter emission norms and technology-driven evolution in the Indian auto sector. Post-listing performance will depend on how the company manages growth, margins and capital allocation in a competitive environment.
