For investors, it can be quite challenging to decide if the Tenneco Clean Air IPO is a good investment or not. If you are unsure and still thinking about whether to apply or skip this IPO, donāt worry. In this article, we present the top key factors and a detailed review of the Tenneco Clean Air IPO. This will help you analyze the strengths, risks, and financial details of the Tenneco Clean Air IPO, improving your investment decision.
About Company
Established in 2018, Tenneco Clean Air is one of the leading manufacturers and suppliers of critical, highly engineered, and technology-intensive clean air, powertrain, and suspension solutions for Indian and international vehicle makers.
Its customers include OEMs who use their products in 1. Passenger Vehicles (PVs), 2. Commercial Vehicles like trucks and off-highway vehicles, 3. Industrial and other uses include generator sets, small commercial vehicles, two-wheelers, and three-wheelers.
Moreover, as of March 31, 2025, this firm is operating 12 manufacturing facilities, wherein 7 clean Air& Powertrain Solution facilities and 5 Advanced Ride Technologies facilities across seven states and one union territory in India. They have a local supply chain that follows Tenneco Groupās global purchasing standards. In the financial years 2023, 2024, and 2025, approximately 91ā92% of raw material costs (excluding substrates) originated from domestic sources.
Strengths
- The company offers a well-diversified range of its own products and solutions, focusing on innovation to provide advanced, customized products at affordable prices.
- The company has little to no debt remaining.
- Tenneco has maintained a strong dividend payout ratio of 56.4%.
- The firm showed solid financial results driven by an experienced leadership team guided by a strong board of directors.
Weaknesses
- The company earns most of its revenue from the passenger vehicle (āPVā) and commercial vehicle (āCVā) sectors in India. Any sudden changes that happen in those sectors in India can negatively affect the business, cash flow, and financial condition.
- Tenneco Clean has several export plans to achieve growth. However, any changes in the tariff rules or global issues that occur can negatively impact the business and finances.
- The business depends on its top 10 suppliers for its raw materials and components like pressed parts, electrodes, and bimetal strips. Unable to supply on time or limited suppliers can impact the business and interrupt production.
- If the customers demand lower prices or they are not able to pass on higher costs to it can badly affect the companyās revenue and profits.
Tenneco Clean Air IPO Review
| Reviewer | Recommedation |
| IPO Watch | May Apply |
| Lakshmishree Investment & Securities Ltd | Apply |
| Aditya Birla Money Limited | Apply |
| BP Equities (BP Wealth) | Apply |
| Canara Bank Securities Ltd | Apply |
| Capital Market | May Apply |
| Choice Equity Broking Pvt Ltd | Apply |
| ICICI Direct | Apply |
| InCred Equities | Not Rated |
| Pioneer Investcorp Ltd. (PINC) | Not Rated |
| Reliance Securities | Apply |
| SBICAP Securities Limited | Apply |
| SMC Global | Neutral |
| SMIFS Limited | Apply |
| Sushil Finance Ltd | Apply |
| Swastika Investmart Ltd | Neutral |
| Ventura Securities Limited | Apply |
Tenneco Clean Air IPO Details
| IPO Open Date: | November 12, 2025 |
| IPO Close Date: | November 14, 2025 |
| Face Value: | ā¹10 Per Equity Share |
| IPO Price Band: | ā¹378 to ā¹397 Per Share |
| Issue Size: | ā¹3,600 Crores |
| Offer-for-Sale | up to 9,06,80,101 equity shares |
| Registrar | MUFG Intime India Pvt.Ltd. |
| IPO Lead Managers | JM Financial Ltd. Citigroup Global Markets India Pvt. Ltd. Axis Bank Ltd. HSBC Securities & Capital Markets (India) Pvt.Ltd. |
| Basis of Allotment | November 17, 2025 |
| IPO Listing Date: | November 19, 2025 |
| Listing | BSE, NSE |
Financial Performance Trend Details
| Particulars | 30 Jun 2025 | 31 Mar 2025 | 31 Mar 2024 |
| Total Income | ā¹1,316.43 Crores | ā¹4,931.45 Crores | ā¹5,537.39 Crores |
| EBITDA | ā¹228.88 Crores | ā¹815.24 Crores | ā¹612.09 Crores |
| EBITDA Margin | 17.80% | 16.67% | 11.19% |
| Profit after Tax (PAT) | ā¹168.09 Crores | ā¹553.14 Crores | ā¹416.79 Crores |
| PAT Margin | 13.07% | 11.31% | 7.62% |
| Net Worth | ā¹1,250.38 Crores | ā¹1,255.09 Crores | ā¹1,116.59 Crores |
| Reserves and Surplus | ā¹1,204.30 Crores | ā¹1,208.76 Crores | ā¹767.26 Crores |
Key Indicators
| KPI | Values |
| ROE | 42.65% |
| ROCE | 56.78% |
| RoNW | 46.65% |
| PAT Margin | 11.31% |
| EBITDA Margin | 16.67% |
| Price to Book Value | 12.77 |
| Market Capitalization | ā¹16,023.09 Cr. |
Peer Comparison with the Company
| Name of the Company | Face Value (ā¹) | Basic EPS (ā¹) | Diluted EPS(ā¹) | RONW (%) | P/E Ratio | NAV(ā¹) |
| Tenneco Clean Air | 10 | 13.68 | 13.68 | 46.65 | [ā] | 31.10 |
| Listed Peers | ||||||
| Bosch Ltd | 10 | 683.25 | 683.25 | 15.58 | 57.39 | 4,682.16 |
| Timken India Ltd | 10 | 59.48 | 59.48 | 17.00 | 49.22 | 378.21 |
| SKF India Ltd | 10 | 114.50 | 114.50 | 21.43 | 19.21 | 525.50 |
| ZF Commercial Vehicle Control System India Ltd | 5 | 242.90 | 242.90 | 15.35 | 53.67 | 1,694.75 |
| Sharda Motor Industries Ltd | 2 | 109.71 | 109.71 | 30.46 | 9.67 | 184.97 |
| Gabriel India Ltd | 1 | 17.05 | 17.05 | 22.42 | 75.92 | 82.38 |
| Uno Minda Ltd | 2 | 16.42 | 16.37 | 18.36 | 75.11 | 95.99 |
| Sona BLW Precision Forgings Ltd | 10 | 9.92 | 9.92 | 14.76 | 46.49 | 88.38 |
Promoters & Track Records, if any
- Tenneco Mauritius Holdings Limited is one of the promoters of the Company holds 333,725,530 of Equity shares, representing 82.69% of the pre-offer paid-up Equity Share capital in the company.
- Tenneco (Mauritius) Limited is one of the promoters of the Company, holding 26,734,261 Equity shares, representing 6.62% of the pre-offer paid-up Equity share capital in the Company.
- Federal-Mogul Investments B.V. is one of the promoters of the Company holds 10,607,654 Equity Shares, representing 2.63% of the pre-offer paid-up Equity share capital in the company.
- Federal-Mogul Pty Ltd is one of the promoters of the company, holds 14,478,794 Equity Shares, representing 3.59% of the pre-offer paid-up Equity share capital in the company.
- Tenneco LLC is one of the promoters of the company and holds 6,974,946 Equity Shares, representing 1.73% of the pre-offer paid-up Equity share capital in the company.
Industry Peer Group P/E ratio
The automotive components industry peer group has a P/E ratio range from a low of 9.67 to a high of 75.92, with an average of 48.34.
Tenneco Clean Air IPO – Should You Apply or Not?
With its Strong market position, diversified client base throughout local and worldwide markets, and advanced technology makes Tenneco Clean Air IPO is a powerful competitor. Its plan offers clean air and methods that control emissions, making it a good choice for future growth. However, high dependence on government policies, any sudden changes in tariffs or global economic conditions, and pricing pressure are some of the key risks of the company.
As of November 10, the GMP of the Tenneco Clean Air is ā¹67, indicating a listing gain of around 15% to 17%. The verdict is that Short-term investors can consider applying for the IPO for listing gains after evaluating GMP trends and strong brand reputation. Whereas Long-term investors must analyze the risks regarding global demand before subscribing.
Please note:
Investors are advised to make their own decisions and apply entirely at their own risk. This article is written using information from the companyās RHP (Red Herring Prospectus) data and online sources. If you have any queries, kindly contact the IPO Watch Team.
