IPO Frenzy: Tenneco Clean Air India Surges Past Full Subscription on Day 2 - Is This The Next Big Listing?

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Updated on 13 Nov 2025, 07:28 am

The Initial Public Offering (IPO) of Tenneco Clean Air India, valued at Rs 3,600 crore, has successfully crossed the full subscription mark on its second day of bidding. By noon on Thursday, the issue was subscribed 1.03 times. The primary driver of this demand was the Non-Institutional Investor (NII) category, which saw a robust subscription rate of 2.95 times. This includes both large NIIs (applications over Rs 10 lakh) and small NIIs (applications between Rs 2 lakh and Rs 10 lakh), indicating strong interest from high-net-worth individuals and proprietary investors. Retail investor participation also improved significantly, with the segment subscribing 0.79 times, showing a willingness to bid at the upper end of the price band. The Qualified Institutional Buyer (QIB) category, typically active on the final day, remained largely inactive with only 1% subscription so far. The IPO, closing on November 14, is an entirely Offer-For-Sale (OFS) by its promoter, Tenneco Mauritius Holdings, meaning the company will not receive any fresh capital from the issue. The price band is set between Rs 378 and Rs 397 per share, with a scheduled listing on November 19 on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

**Impact** This strong subscription indicates significant investor confidence in Tenneco Clean Air India's business prospects and its potential for a successful market debut. A successful listing could boost sentiment for other upcoming IPOs in the auto ancillary sector. The grey market premium (GMP) of 22% suggests positive listing day expectations, though experts caution that high valuation might limit long-term upside.

**Terms Explained** * **IPO (Initial Public Offering):** The process by which a private company offers its shares to the public for the first time to raise capital. * **Offer-For-Sale (OFS):** A method where existing shareholders (promoters) sell their shares to the public, rather than the company issuing new shares. * **Subscription:** The extent to which an IPO issue is oversubscribed or undersubscribed, indicating demand versus the number of shares offered. * **Non-Institutional Investors (NIIs):** Investors who apply for shares worth more than Rs 2 lakh but less than Rs 10 lakh (small NIIs) or more than Rs 10 lakh (large NIIs). This category includes high-net-worth individuals and corporate bodies. * **Retail Investors:** Individual investors who apply for shares worth up to Rs 2 lakh. * **Qualified Institutional Buyers (QIBs):** Large institutional investors such as mutual funds, foreign institutional investors, and banks. * **Grey Market Premium (GMP):** The unofficial premium at which IPO shares trade in the grey market before they are listed on the stock exchange. * **Price Band:** The range within which the IPO shares are offered for subscription. * **Anchor Investors:** Institutional investors who invest in an IPO before it opens to the public, providing a vote of confidence. * **OEMs (Original Equipment Manufacturers):** Companies that produce finished goods, such as car manufacturers, who purchase components from suppliers like Tenneco Clean Air India. * **FY25 (Fiscal Year 2025):** Refers to the financial year ending March 31, 2025. * **ROE (Return on Equity):** A measure of a company's profitability in relation to shareholders' equity. * **EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization):** A measure of a company's operating performance.