| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹378 to ₹397 | 37 | 12th Nov, 2025 –14th Nov, 2025 | ₹3,600.00 Cr |
Tenneco Clean Air India Ltd
Tenneco Clean Air India Limited (TCAIL) is a part of the Tenneco Group, a US-headquartered global Tier 1 automotive component supplier. The company manufactures and supplies critical, highly engineered, technology-intensive clean air, powertrain, and suspension solutions tailored for Indian OEMs and export markets. The company’s customer base spans PV and CV OEMs, as well as industrial and other applications. The company is also present in the aftermarket segment primarily through Motocare India Private Limited (Motocare), a subsidiary of Tenneco LLC and the Group Company. As of June 30, 2025, the company has 12 manufacturing facilities, comprising seven Clean Air & Powertrain Solutions facilities and five Advanced Ride Technology facilities, across seven states and one union territory in India. The company also operates two R&D centres in India, equipped to address both global and local needs. In Q1FY26 and FY25, TCAIL served 101 and 119 customers, respectively, including all top seven PV OEMs in India and all top five CT OEMs in India (OEM rankings determined by sales volume in Fiscal 2025). TCAIL also boasts an average relationship of 19.2 years with its top 10 customers. The company has two business divisions: 1) Clean Air Solutions & Powertrain Solutions; and 2) Advance Ride Technologies. Under Clean Air Solutions, the company designs, manufactures and sells exhaust aftertreatment systems, such as catalytic converters, mufflers and exhaust pipes to OEMs; Under Powertrain Solutions, TCAIL designs, manufactures and sells engine bearings, sealing systems and ignition products (such as spark plugs and ignition coils) to OEMs and the aftermarket under the Champion brand. The advanced ride technologies division designs, manufactures and sells shock absorbers, struts and advanced suspension systems under the Monroe brand to OEMs and the aftermarket, while being engine agnostic. As of Q1FY26, the company reported capacity utilization of 46.4% for cold end products (mufflers and exhaust pipes) and 79.8% for hot end products (catalytic converters) under its Clean Air Solutions division, while utilization in the Advanced Ride Technologies division stood at 86.2%. For FY25, the annual capacity utilization was 54.8% for cold end products, 80.6% for hot end products, and 83.0% for the Advanced Ride Technologies division. The company’s sales mix remains relatively balanced, with 57.5% being derived from Clean Air & Powertrain Solutions and 47.5 from Advanced Ride Technologies (as of FY25).
Objective of the Tenneco Clean Air India Ltd IPO
The company will not receive any proceeds from the issue as the entire offer comprises of OFS worth Rs. 3,600 crores.
Rationale To Tenneco Clean Air India Ltd IPO
Established market leadership and a diverse portfolio strategically positions the company to capture market and industry trends
TCAIL holds a strong position as a market-leading supplier of clean air, powertrain, and suspension solutions to major Indian and global OEMs. The company commands significant market shares across multiple automotive subsegments, including 57% in Clean Air Solutions for commercial trucks, 68% for off-highway vehicles, and 52% in shock absorbers and struts for passenger vehicles (as of FY25). Its diversified product portfolio, spanning catalytic converters, mufflers, engine bearings, sealing systems, spark plugs, and advanced suspension systems under the Champion and Monroe brands, enables TCAIL to serve both internal combustion and emerging powertrain technologies. Supported by long-standing customer relationships averaging 19.2 years with its top 10 clients, the company has established deep technical integration with OEMs, reinforced by stringent qualification processes and homologation requirements that contribute to high customer stickiness. In FY25, TCAIL derived 81.5% of its revenue from its top 10 customers, reflecting strong linkages with leading OEMs while maintaining a broad base of over 100 customers. The company benefits from healthy capacity utilization levels, providing scope for incremental growth without substantial capacity expansion. Additionally, the presence in aftermarket and export segments offers additional diversification and partial insulation from domestic automotive cyclicality, supporting revenue stability and long-term growth prospects.
Innovation-driven operations and an efficient, localized manufacturing network to drive competitive edge
The company benefits from a strong innovation-led operating framework supported by its ability to leverage Tenneco Group’s global R&D ecosystem and deploy advanced, cost-effective technologies tailored to the Indian market’s needs. The company operates two dedicated R&D centres in India, equipped for design simulation, prototyping, and extensive validation testing, allowing close collaboration with OEMs on product development. These facilities are supported by Tenneco Group’s global intellectual property portfolio, comprising over 5,000 active patents and 7,500 trademarks worldwide, enabling TCAIL to integrate global technology platforms into locally relevant, modular, and customized solutions. Complementing its innovation capabilities, the company maintains a flexible and automated manufacturing footprint with 12 facilities strategically located across key automotive hubs in India, ensuring proximity to major OEM customers and logistical efficiency. A highly localized supply chain, with over 83% of material costs sourced domestically in FY25, enhances cost competitiveness and supply chain resilience. Continuous focus on operational excellence through lean manufacturing practices, automation, and global initiatives such as the TenPlus and P3 systems further supports efficiency, standardization, and quality consistency across plants. Together, these factors position TCAIL as an innovation-driven, process-efficient manufacturer capable of delivering globally benchmarked products at competitive Indian cost structures.
Valuation of Tenneco Air India Ltd IPO
Tenneco Clean Air India Limited (TCAIL), a subsidiary of the US-based Tenneco Group, is a leading Tier-1 automotive component manufacturer with a well-diversified portfolio spanning clean air, powertrain, and suspension solutions. The company’s strong positioning across passenger vehicles, commercial vehicles, and off-highway applications, supported by long-standing relationships with major Indian and global OEMs, underpins its stable growth profile. TCAIL is strategically placed to capitalize on multiple structural industry tailwinds including tightening emission norms (BS7, CAFE, TREM V, and CEV-V), rising vehicle premiumization, and increasing adoption of hybrid and electric vehicles. The company’s Clean Air Solutions division stands to benefit from higher content per vehicle as emission standards become more stringent, while the Advanced Ride Technologies and Powertrain divisions are expected to gain from growing demand for advanced, lightweight, and hybrid-compatible components. TCAIL’s continued emphasis on localization, cost optimization, and cross-divisional synergies is expected to enhance competitiveness and margin resilience. Its focus on manufacturing critical components domestically. Moreover, the company’s ability to leverage its Indian operations as an export hub for Tenneco Group entities and global OEMs provides an additional growth lever. Financially, while the company has reported a flattish topline growth between FY23-FY25, growing at a CAGR of 0.7%, the company has highlighted strong operational efficiency, with its OPM expanding from 11.8% in FY23 to 16.7% in FY25. On the returns front, both ROCE and ROE saw a steady improvement, with ROE increasing from 32.9% in FY23 to 42.7% in FY25 and ROCE improving from 33.5% in FY23 to 56.8% in FY25. On the valuation front, with the company trading at a P/E of 29.0x based on it FY25 earnings, at considerable discount compared to other components peers. We thus recommend a “SUBSCRIBE” rating from a medium-to long-term perspective.
What is the Tenneco Clean Air India Ltd IPO?
The initial public offer (IPO) of Emmvee Photovoltaic Power Ltd offers an early investment opportunity in Tenneco Clean Air India Ltd . A stock market investor can buy Tenneco Clean Air India Ltd IPO shares by applying in IPO before All Tenneco Clean Air India Ltd shares get listed at the stock exchanges. An investor could invest in Tenneco Clean Air India Ltd IPO for short term listing gain or a long term.
How to apply for the Tenneco Clean Air India Ltd IPO through StoxBox?
To apply for the Tenneco Clean Air India Ltd IPO through StoxBox one can apply from the website and also from the app. Click here
When will the Tenneco Clean Air India Ltd IPO open?
Tenneco Clean Air India Ltd IPO is opening on 12th Nov 2025. Apply Now
What is the lot size of the Tenneco Clean Air India Ltd IPO?
The Lot Size of Tenneco Clean Air India Ltd IPO is 37 equity shares. Login to your account now.
When is the Tenneco Clean Air India Ltd allotment date?
The allotment Date for Tenneco Clean Air India Ltd IPO is 17th Nov 2025. Login to your account now.
When is the Tenneco Clean Air India Ltd IPO listing date?
The listing Date for Tenneco Clean Air India Ltd IPO is 19th Nov 2025. Login to your account now
What is the minimum investment required for the Tenneco Clean Air India Ltd IPO?
In the Retail segment the minimum investment required is Rs. 14,689. Login to your account now
What is the maximum investment allowed for the Tenneco Clean Air India Ltd IPO?
In the Retail segment the maximum investment requirement is Rs. 1,90,957. Login to your account now
What are the risks associated with investing in the Tenneco Clean Air India Ltd IPO?
The company derives ~80% of its revenue from PV and CV spaces, exposing the company to higher automobile related cyclical impact.
The company is heavily influenced by government policies and regulations regarding emission standards, which can adversely impact its business operations.
TCAIL relies on the Tenneco Group for brand licenses, patented technologies, technical know-how, and certain key materials. Any adverse change or termination of this relationship could negatively impact its operations, financial performance, and market position.
When will the Tenneco Clean Air India Ltd IPO shares be credited to my Demat account?
The Tenneco Clean Air India Ltd IPO be credited to the account on allotment date which is 12th Nov 2025. Login to your account now
Where can I find the Tenneco Clean Air India Ltd IPO prospectus?
The prospectus of Tenneco Clean Air India Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE
