A new IPO is on the horizon. Tenneco Clean Air India, the Indian arm of US-based Tenneco Group, has filed its Draft Red Herring Prospectus (DRHP) with SEBI, planning to raise up to Rs 3,000 crore through an offer-for-sale (OFS). The company will not receive any funds from this public issue. This means that the entire amount will go to the promoter, Tenneco Mauritius Holdings.
Let’s take a look at the key this to watch out for this upcoming issue–
Tenneco Clean Air India IPO: What is on offer?
The IPO is a pure OFS by the promoter entity. Tenneco Mauritius Holdings will sell shares worth Rs 3,000 crore, while the company itself won’t raise fresh capital. The face value of each equity share is Rs 10. The shares are proposed to be listed on both the BSE and NSE.
Tenneco Clean Air India IPO: About the company
Tenneco Clean Air India has been present in India since 1979, with its first manufacturing unit set up in Parwanoo. Today, the company operates 12 manufacturing plants across the country. It makes clean air, powertrain, and suspension products that are supplied to Indian and global automobile manufacturers.
Tenneco Clean Air India IPO: Who are the customers?
The company serves a broad range of original equipment manufacturers (OEMs), including all top 7 passenger vehicle makers and all top 5 commercial truck makers in India. It also supplies parts for off-highway vehicles.
Tenneco Clean Air India IPO: Financials performance of the company
In FY25, the company posted a 32.7% rise in net profit to Rs 553.1 crore. However, its total revenue saw a decline of 10.6%, coming in at Rs 4,890.4 crore.
Tenneco Clean Air India IPO: Who is managing?
The IPO is being managed by a group of investment banks which include JM Financial, Citigroup Global Markets India, Axis Capital, and HSBC Securities and Capital Markets (India).