LIVE: Tenneco Clean Air IPO lists at 27% premium to issue price – Check latest price updates here

Post listing, Tenneco Clean Air shares were trading at Rs 501.15 on the BSE, up 0.63%, while on the NSE the stock was quoting at Rs 494.20, down 2.14%.

The share price of Tenneco Clean Air is listed at Rs 505 on the National Stock Exchange. Tsis is a premium of 27.2% to the issue price of Rs 397. The stock is listed at Rs 398, a premium of 25.44% on the BSE. The stock further surged by over 1% to trade at Rs 510.70.

Tenneco Clean Air IPO lists at 27% premium to issue price- opens at Rs 505 per share on NSE, and debuts at Rs 498 per share on BSE.

Geojit has a ‘Subscribe’ rating on the Tenneco IPO. According to them, “At the upper price band of Rs 397, it is valued at 29x FY25 P/E, which appears reasonable relative to peers. Supported by strong parentage, market leadership in clean-air and ride performance systems, established OEM partnerships, robust financials, and healthy return ratios, the company is well-positioned to capitalize on structural tailwinds in India’s auto sector, including premiumisation and tightening emission norms.”

Deven Choksey Research believes that “Tenneco India is strongly positioned to capitalize on favourable industry tailwinds, underpinned by its market leadership, technological prowess, and robust financial health.”

They pointed out that the “company commands a dominant market share, ranking as the largest supplier of Clean Air Solutions to Indian Commercial Truck OEMs (57% share) and the largest supplier of shock absorbers and struts to Indian Passenger Vehicle OEMs (52% share).”

They believe that “This leadership is supported by key differentiators, including deep integration with the global Tenneco Group for R&D and sticky relationships with top-tier OEMs creating high switching costs. Financially, its net debt-free status and superior return metrics provide significant operational flexibility.”

A clear shift towards premiumisation and a rising share of SUVs is increasing content-per-vehicle. Furthermore, the penetration of Electric Vehicles (EVs) is projected to constitute 15-20% of all PV sales by FY30, creating new opportunities for suppliers of suspension and other EV-agnostic components.

The company reported a Return on Equity of 42.65%, a Return on Capital Employed of 56.78%, and a PAT margin of 11.31%. Its EBITDA margin stands at 16.67%, and it currently operates without debt.

The company runs 12 automated manufacturing units across the country, operating at over 80% utilisation. It also hosts two research and development centres in India, which work in coordination with Tenneco’s global R&D network of 39 facilities.

The company holds a notable presence in clean air solutions within the auto-components industry. With India’s auto-components market projected to grow at 9–11% compound annual growth rate between 2025 and 2030, the segment continues to evolve with tightening emission standards and rising clean-tech requirements.

Tenneco India is strongly positioned to capitalise on favourable industry tailwinds, underpinned by its market leadership, technological prowess, and robust financial health. The company commands a dominant market share, ranking as the largest supplier of Clean Air Solutions to Indian Commercial Truck OEMs (57% share) and the largest supplier of shock absorbers and struts to Indian Passenger Vehicle OEMs (52% share).

Tenneco Clean Air India supplies emission-control parts to multiple original equipment manufacturers in the domestic market. Its integration with the global Tenneco network gives it access to proprietary designs and evolving emission technologies.

The Indian automotive components sector is poised for steady growth. The key end markets for Tenneco India are projected to expand:

• Clean Air Solutions: The domestic market for Clean Air Solutions was estimated at Rs 5,423.4 crore in FY25 and is projected to grow at a CAGR of 8-10% through FY30.

• Passenger Vehicles (PV): This segment is expected to grow at a CAGR of 4-6% through FY30.

• Commercial Trucks (CT): This market is projected to expand at a CAGR of 3-6% through FY30.

With 12 manufacturing facilities across India, the company not only serves the domestic market but also functions as an export hub for Tenneco Group’s global network. This operational footprint and technological integration are central to its forward-looking strategic outlook.

For the financial year ending FY25, the company reported Rs 4,890 crore in revenue, an EBITDA margin of 16.67%, and Rs 553 crore profit after tax. The business has recorded steady growth in both topline and profitability.

Tenneco Clean Air India Limited, created in 2018, operates as part of Tenneco Inc., a global manufacturer of clean air and powertrain technologies. The Indian arm focuses on producing advanced exhaust and after-treatment systems for the domestic automotive sector.

Retail participants were required to bid for at least 37 shares, which amounts to Rs 14,689 at the upper band.

Small High Net-worth Individuals could apply for up to 518 shares, while High Net-worth Individuals could place bids for 2,553 shares, depending on their category limits.

The shares are scheduled to list on the BSE and NSE today, November 19, marking the company’s entry into the public market.

The issue was opened from November 12 to November 14. The allotment was confirmed on November 17, and shares reached eligible Demat accounts on November 18.

The company has set a price band of Rs 378 to Rs 397 per share. At the upper limit, the price works out to a price-to-earnings ratio of around 46.6 times, based on its FY25 earnings.

Tenneco Clean Air India’s public offer is structured as a Rs 3,600 crore book-built IPO, consisting of 9.07 crore equity shares. The entire issue is an Offer for Sale, meaning the proceeds go to existing shareholders rather than the company.