Tenneco Clean Air India IPO GMP: What Does Grey Market Signal Ahead Of Nov. 12 Launch?

Tenneco Clean Air India Ltd. is set to launch its initial public offering (IPO) to raise over Rs 3,500 crore from the primary market on November 12.

It is a manufacturer of clean air and powertrain systems for the automotive industry.

Ahead of its opening, the grey market premium (GMP) indicated a potential listing gain of nearly 16% per share over the issue price. According to the latest grey market trends, the GMP for the mainboard offer has declined by as much as 30% since Friday, November 7, when the grey market premium was Rs 87.

Investors who want to bid for shares in the IPO can check the following details before making an investment call.

According to InvestorGain, the GMP for the Tenneco Clean Air India IPO stood at Rs 61 as of 11:00 a.m. on November 10. It indicates a potential listing price of Rs 458 per share, a premium of 15.37% compared to the upper limit of the IPO price band. 

Note: GMP does not represent official data and is based on speculation

Tenneco Clean Air India IPO is a book-building issue worth Rs 3,600 crore. It comprises entirely an offer-for-sale (OFS) of 9.07 crore shares.

To participate in the IPO, retail investors must bid for a single lot size of 37 shares, requiring an investment of Rs 14,689. Small Non-Institutional Investors need to bid for 14 lots, amounting to an investment of Rs 2,05,646. Big Non-Institutional Investors can participate in the IPO by bidding for a minimum of 69 lots. It will lead to an investment of Rs 10,13,541.

The price band for the IPO has been fixed between Rs 378 and Rs 397 per share.

JM Financial is the book-running lead manager and MUFG Intime India is the registrar for the issue.

The subscription window will remain open from November 12 to November 14. The IPO share allotment status is expected to be finalised on November 17. The company will transfer shares to the demat accounts of successful bidders on November 18, and refunds to non-allottees will also be processed on the same day.

Shares of the company are tentatively scheduled to be listed on the BSE and NSE on November 19.

Qualified Institutional Buyers (QIBs) will be offered up to 50% of the net offer. Retail investors will be allocated at least 35% of the net issue and the remaining 15% will be reserved for Non-Institutional Investors. 

JM Financial is the book-running lead manager and MUFG Intime India is the registrar for the issue.

The company will not receive any proceeds from the IPO as it is an entirely offer-for-sale issue.

Tenneco Clean Air India, a key subsidiary of the US-headquartered Tenneco Group, is a Tier I automotive component supplier. The parent company reported a revenue of $16,777 million for the fiscal year ended Dec. 31, 2024.

Established in India in 1979 with its first manufacturing facility in Parwanoo, Himachal Pradesh, Tenneco Clean Air India specialises in manufacturing and supplying advanced, technology-driven clean air, powertrain and suspension solutions.

The company serves a diverse customer base across multiple vehicle segments, including passenger vehicles, commercial vehicles and industrial applications, such as generator sets, small commercial vehicles under 3.5 tonnes, two-wheelers and three-wheelers. Tenneco Clean Air India addresses the aftermarket through Motocare India Pvt., a subsidiary of Tenneco LLC.

Apollo Global Management acquired Tenneco in a $7.1 billion deal that was announced in February 2022 and completed in November 2022. The all-cash transaction resulted in Tenneco becoming a private company.

The company reported an 11.8% year-on-year (YoY) increase in profit after tax (PAT) at Rs 168.09 crore in Q1FY26 from Rs 150.31 crore in Q1FY25. Revenue from operations rose 1.17% YoY to Rs 1,285.62 crore in Q1FY26 from Rs 12,70.77 crore in Q1FY25. 

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.