Tenneco Clean Air India to Launch ₹3,000 Crore IPO via OFS Route in FY26; No Fresh Issue
By Shishta Dutta | Published at: Jun 30, 2025 05:52 PM IST
Chennai, June 30, 2025 – Tenneco Clean Air India Limited has filed its Draft Red Herring Prospectus (DRHP) with SEBI, proposing an initial public offering (IPO) of equity shares aggregating up to ₹3,000 crore. The issue, slated for launch in FY26, will be executed entirely through an Offer for Sale (OFS) by the Promoter Selling Shareholder – Tenneco Mauritius Holdings Limited – with no fresh equity issuance.
Offer Structure and Listing Plan
The company’s IPO is a 100% book-built Offer for Sale under Regulation 6(1) of the SEBI ICDR Regulations. The equity shares will be listed on both BSE and NSE, with the designated stock exchange yet to be confirmed.
| Category | Details |
|---|---|
| Issue Size | ₹3,000 crore (₹30,000 million) |
| Offer Type | 100% Offer for Sale |
| Face Value | ₹10 per share |
| Pre-Issue Capital | 403,604,309 equity shares |
| Post-Issue Capital | 403,604,309 equity shares |
| Price Band | To be announced |
As per the DRHP, Tenneco Mauritius Holdings Limited will offload part of its 344.81 million shares. The Offer constitutes a partial exit, with the weighted average cost of acquisition for these shares at ₹138.14.
Indicative Offer Allocation
| Investor Category | Allocation |
|---|---|
| QIB Portion | Not more than 50% |
| Anchor Investors (within QIB) | Up to 60% of QIB Portion |
| NII Portion | Not less than 15% |
| RII Portion | Not less than 35% |
| Mutual Fund Reservation | 5% of Net QIB Portion |
The company will not receive any proceeds from the Offer. The objective is to achieve the benefits of listing and provide an exit route to the promoter.
Financial Highlights (Restated Consolidated)
Tenneco Clean Air India reported robust growth in FY25, with PAT rising 32.72% YoY and EBITDA margin expanding sharply.
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue from Operations | ₹48,273.68 mn | ₹54,676.12 mn | ₹48,904.30 mn |
| EBITDA | ₹5,706.34 mn | ₹6,120.85 mn | ₹8,152.39 mn |
| PAT | ₹3,810.43 mn | ₹4,167.87 mn | ₹5,531.43 mn |
| Basic EPS (₹) | 7.58 | 8.90 | 13.68 |
| Net Worth | ₹13,788.22 mn | ₹11,165.92 mn | ₹12,550.93 mn |
Business Overview and Strategy
Incorporated in 2018, the company operates 12 manufacturing facilities across India and focuses on technology-driven clean air, powertrain, and suspension solutions for leading automotive original equipment manufacturers (OEMs).
The company’s divisions are:
- Clean Air & Powertrain Solutions: Contributed 57.51% of FY25 revenue
- Advanced Ride Technologies: Accounted for the remaining 42.49%
Promoter Holding Pre-IPO
| Promoter Entity | Shareholding | Stake (%) |
|---|---|---|
| Tenneco Mauritius Holdings Ltd. | 344.81 mn | 85.43% |
| Tenneco (Mauritius) Ltd. | 26.73 mn | 6.62% |
| Federal-Mogul Investments B.V. | 10.61 mn | 2.63% |
| Federal-Mogul Pty Ltd | 14.48 mn | 3.59% |
| Tenneco LLC | 6.97 mn | 1.73% |
| Total Promoter Group | 403.60 mn | 100.00% |
Corporate Governance and Listing Timeline
The IPO is being managed by JM Financial, Citigroup, Axis Capital, and HSBC Securities. MUFG Intime India Private Limited is the registrar to the issue. The company has already received in-principle approvals for listing from BSE and NSE. Dates for anchor bidding, price band announcement, and offer opening are awaited.
About the Company
Tenneco Clean Air India Limited is a technology-driven auto component manufacturer, operating under the globally recognised Monroe, Tenneco, and Champion brands. It serves major OEMs in India and exports to Europe, the Americas, and Asia. The company is backed by the global Tenneco LLC group.
REF: https://nsearchives.nseindia.com/corporate/Registration_30062025171438_DRHP.pdf
Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.
If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.
Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations
