Tenneco Clean Air India IPO Opens: Rs 1,080 Cr Mopped Up From Anchor Investors - Get Ready!

Tenneco Clean Air India, a significant player in the automotive component sector, is launching its Rs 3,600 crore Initial Public Offering (IPO). The public offering commenced on November 12 and will conclude on November 14, with the share price fixed in the range of Rs 378 to Rs 397.

A substantial Rs 1,080 crore was already secured from 58 anchor investors on November 11, prior to the public sale. These anchor investors included prominent domestic mutual funds like SBI Mutual Fund, ICICI Prudential MF, HDFC AMC, and Kotak Mahindra AMC, alongside global participants such as Nomura Funds, Fidelity, and BlackRock.

This entire issue is structured as an Offer-for-Sale (OFS), indicating that the promoter, Tenneco Mauritius Holdings, will be selling its existing shares. As a result, Tenneco Clean Air India will not receive any proceeds from this IPO.

The company specializes in manufacturing clean air, powertrain, and suspension solutions, serving over 101 customers including major automotive manufacturers like Maruti Suzuki India, Tata Motors, and Mahindra & Mahindra. It holds a leading position in India as the largest supplier of clean air solutions for commercial trucks and has a substantial market share in shock absorbers and struts for passenger vehicles. JM Financial, Citigroup Global Markets India, Axis Capital, and HSBC Securities and Capital Markets (India) are the appointed merchant bankers for this IPO.

Impact This IPO marks the entry of a new automotive component manufacturer into the Indian stock market, offering investors more choices in the sector. The robust interest from anchor investors suggests a positive market outlook for the company. The listing will also enhance liquidity for existing shareholders. Rating: 7/10

Terms: IPO (Initial Public Offering): The process by which a privately held company offers its shares to the public for the first time. Anchor Investors: Large institutional investors who commit to buying a substantial portion of IPO shares before the public offering begins. Offer-for-Sale (OFS): A type of public issue where existing shareholders sell their shares to the public, rather than the company issuing new shares. Promoter: The individual, group, or entity that originally established and controls a company. Merchant Bankers: Financial institutions that advise companies on IPOs and manage the issuance of securities. Clean Air Solutions: Products and systems designed to reduce harmful emissions from vehicles, such as catalytic converters and exhaust systems. Powertrain Solutions: Components and systems that generate and deliver power to a vehicle's wheels, including engines and transmissions. Suspension Solutions: Parts that connect a vehicle's wheels to its chassis, managing the ride quality and handling.