Tenneco Clean Air IPO Launch: ₹3,600 Cr Issue Opens Nov 12! Grey Market Signals HUGE Investor Frenzy!

Tenneco Clean Air, a subsidiary of global automotive parts manufacturer Tenneco Inc., is set to debut on the Indian stock market with its Initial Public Offering (IPO) opening on Wednesday, November 12, 2025. The company plans to raise a substantial ₹3,600 crore through an Offer for Sale (OFS) of 90.7 million equity shares, with Tenneco Mauritius Holdings being the promoter selling shareholder. The offering is priced within a band of ₹378 to ₹397 per share, with the subscription period extending until Friday, November 14, 2025. Tentative listing is scheduled for Wednesday, November 19, 2025.

Notably, the IPO is structured as an OFS, meaning the company itself will not receive any fresh capital. Instead, existing shareholders are divesting their stakes. Current market sentiment appears positive, with the unlisted shares trading at a grey market premium (GMP) of ₹60, or 15.1 per cent, above the upper price band.

**Impact** This IPO is significant for the Indian auto ancillary sector. Investor interest, as reflected by the GMP, suggests a potential strong debut. However, investors should be aware of key risks: dependence on the parent company for technology and licenses, high revenue concentration from passenger and commercial vehicles (over 80%), and reliance on a few top customers (also over 80%). Additionally, stringent emission regulations and related-party transactions pose further challenges. The success of this IPO could signal investor confidence in India's automotive future, but the inherent risks require careful consideration.

**Difficult Terms** * **Initial Public Offering (IPO)**: 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 sell their shares to new investors. The company does not receive funds from an OFS. * **Grey Market Premium (GMP)**: The unofficial trading price of an IPO in the 'grey market' before its official listing, indicating demand and expected listing gains. * **D-Street**: A colloquial term for the Indian stock market, particularly the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). * **Red Herring Prospectus (RHP)**: A preliminary document filed with regulatory bodies before an IPO, containing detailed company information and offer terms. * **Passenger Vehicle (PV)**: Cars, SUVs, and other vehicles designed primarily for carrying passengers. * **Commercial Vehicle (CV)**: Trucks, buses, and vans used for transporting goods or people as part of a business. * **Emission Standards**: Government regulations limiting the pollutants vehicles can emit.