The wave of multinational corporations (MNCs) looking to tap India’s buoyant equity markets continues to gain momentum. The latest to join the club is Tenneco Automotive India, the Indian arm of the US-based auto component giant Tenneco Inc., which is owned by Apollo Global Management. The private equity heavyweight has officially kick-started preparations for the IPO, with the listing likely in FY26, aiming to raise USD 400–500 million (~INR 4,270 crore) at a valuation of USD 2–2.5 billion (~INR 21,350 crore).
Four Advisors Mandated
Some industry reports suggest that Apollo Global Management has roped in four advisors to steer the IPO process:
- Citi
- Axis Capital
- HSBC Securities
- JM Financial
A formal kick-off meeting has already taken place to outline the IPO roadmap, distribute responsibilities, and initiate preparatory groundwork. The draft red herring prospectus (DRHP) is expected to be filed by May-June 2025.
India’s IPO market provides an exciting opportunity to invest. Many MNCs took the IPO route to list their Indian Units; some of the prominent names in these recent listings are: Carraro India, Hyundai Motor India, and upcoming IPOs like LG Electronics India and Orkla India (parent of MTR & Eastern Condiments).
Strategic Significance and Market Context
This IPO comes at a time when India is one of the busiest IPO markets globally. In 2024 alone, over INR 1,59,524 crore was raised, including Hyundai Motor India’s blockbuster INR 27,870 crore listing — the country’s largest IPO ever.
Apollo’s move appears well-timed. As global investors seek diversification and exposure to India’s robust consumption story, auto components remain a high-interest sector, buoyed by the nation’s growing vehicle market and the ongoing shift in global supply chains.
Tenneco’s India Footprint
Tenneco has long held a substantial presence in India, but recent comments from the company’s leadership underline how central the region has become:
“India is a key part of our past success, our current success and certainly our future.”
— Jim Voss, CEO, Tenneco
The firm has 19 manufacturing facilities, 6 aftermarket distribution centres, multiple tech centres, and employs over 12,000 people across India. It first entered the Indian market in the 1960s and has steadily expanded operations. Today, India is one of its top five revenue contributors globally, up from the ninth spot just five years ago.
Nathan Bowen, Tenneco’s Global EVP, further emphasized the importance of India as a sourcing hub for global OEMs, highlighting its cost advantages and technological capabilities. With Western OEMs seeking alternatives to China amid supply chain realignments, India has emerged as a preferred destination.
“Half of my customer interactions involve India as a key supply topic,” Bowen recently said.
Tenneco Inc.
Apollo Global acquired Tenneco Inc. in February 2022 through an all-cash transaction worth USD 7.1 billion, including debt. The acquisition turned Tenneco into a private company and placed it under the umbrella of Pegasus Holdings, an Apollo affiliate.
Notably, Tenneco had earlier acquired Federal-Mogul Goetze (India) in 2021, which now also comes under Apollo’s indirect control. This gives the PE firm significant leverage in India’s automotive component landscape.
Tenneco’s Core Business
Tenneco is among the top 10 auto component manufacturers globally, serving both OEMs and the aftermarket. It operates across several segments:
- DRiV (Ride Performance and Aftermarket)
- Clean Air
- Powertrain
- Performance Solutions
Its client roster includes major automakers like BMW, Ford, Toyota, Nissan, Volkswagen, Mercedes-Benz, Volvo, Great Wall Motors, and SAIC.
Earlier this year, Tenneco divested its Öhlins Racing unit (a suspension tech leader) to Brembo NV for approximately USD 405 million, a move believed to help focus on core businesses and reduce debt, likely improving investor sentiment ahead of the IPO.
IPOs of Indian Arms
Tenneco IPO aligns with a growing trend of global conglomerates monetizing their India businesses. The MNC India IPO theme has emerged as a lucrative play for both promoters and public market investors, driven by:
- India’s growing middle class and vehicle ownership
- Strong aftermarket demand
- Global OEMs’ China+1 sourcing strategy
- Local regulatory tailwinds favoring domestic manufacturing
With India’s economy targeting a USD 10 trillion GDP by 2030, Apollo’s move to list Tenneco India is not just a capital-raising event, but also a strategic step to embed its portfolio deeper into one of the world’s fastest-growing markets.
Final Take
With a robust manufacturing base, solid export credentials, and favorable market timing, Tenneco India is well-positioned for a successful IPO. Apollo Global’s decision to bring this asset to Indian public markets not only signals confidence in India’s capital markets but also reinforces the nation’s growing stature in global automotive supply chains.
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