In what could become one of the most closely watched listings in India’s bustling IPO calendar, Tenneco India, a subsidiary of the US-based automotive parts giant Tenneco Inc., is gearing up for an initial public offering (IPO) in November 2025. The offering—valued at approximately INR 3,000 crore—will be conducted as a pure Offer for Sale (OFS) through Tenneco Mauritius Holdings, with no new shares being issued.
Tenneco Clean Air India IPO Details and Market Advisors
According to the draft red herring prospectus (DRHP), the IPO aims to raise about INR 3,000 crore (USD 342 million), targeting a valuation of up to USD 2 billion (~INR 17,590 crore). The book-running lead managers for the offering include Axis Bank, JM Financial, HSBC Holdings Plc (India unit), and Citigroup Inc. (India unit).
Investor roadshows have already begun, with institutional investors showing strong interest as India’s capital markets continue to attract global capital. Notably, the IPO will not involve any new capital infusion into Tenneco India; instead, it represents a strategic monetisation by Tenneco’s parent and affiliates.
Background: The Global and Domestic Context
The planned IPO follows a string of successful listings by global subsidiaries in India, including LG Electronics India, which recently saw a 48.24% surge on debut after its USD 1.3 billion (~INR 11,434 crore) IPO—one of the best first-day performances for a large-cap Indian issue.
India’s IPO market has already raised over USD 15 billion (~INR 1.25 lakh crore) in 2025, continuing the momentum from a record USD 21 billion (about INR 1.85 lakh crore) in 2024. This robust environment underlines the strong investor appetite for quality industrial and technology offerings, particularly from multinational-backed firms.
Tenneco India: An Automotive Powerhouse
Operating in India since 1979, Tenneco’s local arm has evolved into a mission-critical Tier-I supplier across three primary divisions:
- Clean Air Solutions – Exhaust aftertreatment systems like catalytic converters, mufflers, and diesel particulate filters (DPFs), commanding over 60% share in the commercial vehicle segment.
- Powertrain Solutions – Bearings, sealing systems, and spark plugs under the Champion brand, with leading positions in multiple sub-segments.
- Advanced Ride Technologies – Shock absorbers and semi-active suspensions under the Monroe brand, holding nearly 48% market share in passenger vehicle dampers.
Major clients include Tata Motors, Mahindra & Mahindra, Maruti Suzuki, Hyundai, Ashok Leyland, and Daimler India—a roster that cements its reputation as one of India’s most reliable component partners.
Financial Strength and Operational Highlights
Tenneco India’s FY25 financials paint a picture of remarkable capital efficiency and profitability:
- Revenue from operations: INR 4,890.43 crore
- Profit after tax: INR 553.14 crore (up 33% year-on-year)
- EBITDA margin: 16.67% (up from 11.19% in FY24)
- Return on Capital Employed (ROCE): 56.78%
- Net Debt: Negative INR 266.20 crore, indicating a net cash position
Tenneco India’s manufacturing footprint includes 12 plants across seven states, strategically located near key OEM hubs. Most facilities operate above 80% capacity utilisation, backed by SAP-driven forecasting systems and lean manufacturing practices.
Innovation and Global Synergies
Leveraging two Indian R&D centres and Tenneco’s 39 global research hubs, Tenneco Clean Air India has pioneered several innovations for local and export markets, including:
- India’s first continuously variable electronic suspension for Mahindra’s EV line-up.
- Localized Euro 6 emission systems into BS6 compliance within just 13 months.
- Multiple patents in ignition systems, lightweight suspensions, and coated bearings.
Exports currently account for 6.46% of value-added revenue, serving clients in 20 countries, including the US, Germany, South Korea, Brazil, and Japan. With Apollo Global Management—Tenneco’s parent since its USD 7.1 billion (~INR 62,445 crore) leveraged buyout in 2022—backing India as a manufacturing and innovation hub, this share is expected to grow to 10–12% in the coming years.
Market Significance
The Tenneco Clean Air India IPO represents more than just a liquidity event—it marks a confidence vote in India’s manufacturing ecosystem. With global investors increasingly viewing India as a reliable production and innovation base, the offering’s outcome will serve as a barometer for the auto component sector’s valuation and the broader market’s risk appetite for industrial plays.
If pricing remains aligned with listed peers such as Sharda Motors and Sona BLW Precision Forgings, trading at 30–35x earnings, analysts believe the IPO could draw significant institutional interest.
Conclusion
As November 2025 approaches, all eyes will be on Tenneco Clean Air India’s listing, a debut that blends global heritage with local precision. In a market driven by reform, electrification, and sustainability, the company’s clean balance sheet and innovation-centric model could make it one of the standout industrial IPOs of the year—potentially setting the tone for how multinational auto component players navigate India’s vibrant capital markets in the decade ahead.
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