Tenneco Clear Air India Limited recently made its debut on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), where it experienced a notable rise in share price. On the NSE, the stock listed at ₹505, representing a significant premium of 27.20% above its initial public offering (IPO) price of ₹397. Meanwhile, on the BSE, shares commenced trading at ₹498, reflecting a 25.44% increase from the issue price.
The IPO involved an offer for sale of 9.07 crore equity shares valued at ₹3,600 crore, facilitated by Tenneco Mauritius Holdings Ltd. Importantly, there was no fresh issue component in this IPO, which means that the proceeds from the sale would not benefit the company directly but would instead go to the selling shareholders. The firm anticipates that the listing will enhance its visibility and brand image while providing liquidity and establishing a public market for its equity shares in India, as detailed in its red herring prospectus (RHP).
Investor interest in the IPO was substantial, with the offering being subscribed 58.83 times. This marked a strong demand, with bids totaling approximately 3.92 billion equity shares against the 6.66 million shares available. The company's promoters include several reputable entities such as Tenneco (Mauritius) Ltd and Tenneco LLC, alongside Federal-Mogul Investments BV and Federal-Mogul Pty Ltd.
Prior to the IPO, Tenneco Clean Air managed to secure ₹1,079.99 crore from a variety of anchor investors, which included major financial institutions such as SBI Mutual Fund, HDFC Mutual Fund, and international investors such as BlackRock and the Government Pension Fund Global of Norway.
As a prominent player in the manufacturing sector, Tenneco Clean Air specializes in producing highly engineered and technology-intensive clean air, powertrain, and suspension solutions. The company's diverse product range includes exhaust aftertreatment systems, catalytic converters, mufflers, shock absorbers, and struts, which are essential in today's automotive industry focused on reducing emissions and enhancing performance. The recent success of its IPO positions Tenneco Clean Air as a valuable contender in the market, increasing its prospects for growth and innovation in the future.