Tenneco Clean Air India IPO: Rs 1080 Crore Anchor Funding & Massive Investor Rush Unveiled!

Tenneco Clean Air India, an entity linked to the US-based Tenneco Group, has secured Rs 1,079.99 crore from anchor investors a day prior to its Initial Public Offering (IPO) opening for public subscription. A total of 58 entities, including prominent Indian mutual funds like SBI Mutual Fund, ICICI Prudential Mutual Fund, and HDFC Mutual Fund, alongside international investors such as BlackRock and Norway's Government Pension Fund Global, participated in the anchor book. These investors were allocated over 2.72 crore equity shares at Rs 397 per share. The upcoming IPO is valued at Rs 3,600 crore and opens for public subscription on November 12, closing on November 14, with a price band set at Rs 378-397 per share. The company aims for a valuation of over Rs 16,000 crore at the upper price band. Notably, this offering is exclusively an Offer for Sale (OFS) by promoter Tenneco Mauritius Holdings Ltd, meaning no new capital will be raised by Tenneco Clean Air India itself, as all proceeds go to the selling shareholder. The issue size was increased from Rs 3,000 crore to Rs 3,600 crore. Allocation includes 50% for QIBs, 35% for retail investors, and 15% for non-institutional investors, with a minimum bid of 37 shares. The shares are slated for listing on November 19. The IPO is managed by JM Financial, Citigroup Global Markets India, Axis Capital, and HSBC Securities and Capital Markets (India) Private Ltd. Impact: The strong interest from anchor investors indicates high confidence in Tenneco Clean Air India's market position and future prospects, which can lead to a positive debut and sustained investor interest post-listing. Rating: 8/10. Difficult Terms: IPO (Initial Public Offering): A process where a private company sells shares to the public for the first time. Anchor Investors: Large institutional investors who commit to buying shares before the public offering to build confidence. Offer for Sale (OFS): An existing shareholder sells their shares; the company doesn't get the funds. Qualified Institutional Buyers (QIBs): SEBI-approved institutional investors. Retail Investors: Individual investors applying for shares up to a certain amount. Non-Institutional Investors (NIIs): High net-worth individuals and corporates investing above retail limits. Bourses: Stock exchanges. Promoter: The founders or main controllers of a company.