Tenneco Clean Air IPO

Review 2025 – Details, Financials, SWOT & Should You Apply

Industry Outline

Tenneco Clean Air operates in the automotive components & emission‐control sector—supplying clean air, powertrain and advanced suspension systems to vehicle OEMs (passenger, commercial & off-highway).

Key tailwinds: tightening emission norms (India + global), rising premium vehicle/SUV share, global supply-chain shifts & localisation of manufacturing.

Risks include automotive demand cyclicality, raw material/steel-cost volatility, transition to EVs (which may reduce some ICE-component demand).

About the Company

Tenneco Clean Air India is a dominant Tier-I supplier in the Indian automotive component industry, backed by the U.S.-headquartered Tenneco Group.

Core Business: The company operates two main divisions supplying Original Equipment Manufacturers (OEMs):
- Clean Air & Powertrain Solutions (57.5% of Revenue): Manufacturing highly engineered emission control systems (e.g., catalytic converters, mufflers) required to meet strict BS-VI and upcoming emission norms.
- Advanced Ride Technologies (42.5% of Revenue): Manufacturing suspension systems, including shock absorbers and struts.
Market Position: The company holds entrenched market leadership in multiple segments:
- 57% Market Share in Clean Air Solutions for Commercial Trucks (CTs).
- 52% Market Share in Shock Absorbers and Struts for Passenger Vehicles (PVs).
Promoter & CEO: The company is promoted by the global Tenneco Group. The Whole-time Director & CEO is Arvind Chandrasekharan.
Litigation / Risks:No major publicly disclosed litigation highlighted in the sources, but risk factors include automotive cyclicality, dependence on OEMs, raw material cost inflation and regulatory/trade risks.

IPO Key Details

IPO Date	November 12, 2025 to November 14, 2025
Listing Date	November 19, 2025
Face Value	₹10 per share
Issue Price Band	₹378 to ₹397 per share
Issue Price Final	₹397 per share
Lot Size	37 Shares
Sale Type	Offer For Sale
Total Issue Size	₹3,600.00 Cr
Issue Type	Book building IPO
Listing At	BSE, NSE

IPO Timeline

Issue Opens	12 November 2025
Issue Closes	14 November 2025
Allotment Finalised	17 November 2025
Listing	19 November 2025=

IPO Objective

Since this IPO is entirely an Offer For Sale, no fresh funds are being raised by the company. The proceeds go to selling shareholders.

The company benefits indirectly via listing, enhanced public profile, better access to capital markets.

Financials

Metric	FY 2023	FY 2024	FY 2025	Analysis
Revenue from Operations	4,827.37	5,467.61	4,890.43	Revenue contraction in FY25 (approx. 11% YoY) but a strong rebound expected.
EBITDA	630.23	681.86	815.70	33% Growth in EBITDA (FY24-FY25), reflecting strong operating leverage.
Net Profit (PAT)	381.08	416.66	552.06	33% Growth in PAT (FY24-FY25), driven by cost efficiency and margin expansion.
EBITDA Margin (%)	13.06%	12.47%	16.67%	Significant margin expansion due to cost optimization and better product mix.
PAT Margin (%)	7.89%	7.62%	11.31%	Substantial improvement in net profitability.

KPI & Financial Highlights

Strong profitability improvement in FY25 despite revenue dip.

High return metrics (ROCE >50%) indicative of efficient capital use.

Listing performance: Shares debuted at ~₹505 on NSE vs issue price ₹397 (~27% premium).

SWOT Analysis

Strengths

Global parent with technology & scale.
Dominant market position in emission control & suspension segments.
Strong financials with high return ratios.

Weaknesses

Pure OFS – company is not raising fresh capital, so growth funding may depend on internal accruals or borrowing.
Heavy dependence on the auto sector (cyclical).

Opportunities

Tightening emission norms (India + exports) increasing content-per-vehicle.
“China+1” supply-chain shift favouring Indian localisation.
Premium SUV / EV growth increasing content value.

Threats

Automotive downturns could hurt volumes.
Raw material price inflation (steel, substrates) pressuring margins.
Transition to EVs may reduce demand for some ICE-components over long term.

Competitive Analysis & Market Peers

Peers include Indian auto-component manufacturers in clean-air/powertrain/suspension segments (e.g., Gabriel India Ltd., Sona BLW Precision Forgings Ltd., ZF Commercial Vehicle Control Systems India Ltd.) as referenced in IPO review.

Compared to peers, Tenneco Clean Air offers strong market share, global backing, and high margin metrics — making it relatively well-placed.

Should You Apply for the IPO?

Verdict (Educational):

If you are a long-term investor comfortable with automotive sector risks, Tenneco Clean Air could be a worthy inclusion. If you are looking for short-term gains or are risk-averse, you might consider waiting for post-listing performance and clearer growth signals.

Always match with your own risk profile, read the latest RHP, and if needed consult a SEBI-registered advisor.

Conclusion

The Tenneco Clean Air IPO stands out as one of the few well-placed, profitable, technology-intensive auto‐component listings of 2025. With global backing, strong share in niche segments, and high returns, it ticks many quality boxes. However, as with all industrial cyclic businesses, execution and sector health will matter. For investors, due diligence on auto demand trends, margin sustainability and valuation is recommended.

FAQ

Q1. What is the price band of the Tenneco Clean Air IPO?
A: ₹378 – ₹397 per share.

Q2. What is the lot size and minimum investment for retail investors?
A: The minimum lot is 37 shares, which translates to approximately ₹14,689 at the upper band (₹397 × 37).

Q3. What is the issue size and what kind of issue is this?
A: Approx ₹3,600 crore. It is wholly an Offer For Sale (OFS), meaning the company isn’t raising fresh capital.

Q4. When will the listing happen?
A: The shares listed on 19 November 2025 on both NSE & BSE.

Q5. Is the company profitable?
A: Yes. It reported profit of ~₹553.14 crore in FY25, with strong margin improvements and ROCE of ~56.78%.

Q6. Should I apply for this IPO?
A: It depends on your investment horizon, risk appetite and portfolio. The business is strong but sector‐cyclic and listing premium is already seen. Do your own research or consult a SEBI‐registered advisor