Tenneco Clean Air India Sets IPO Price Band at Rs 378-397, Plans Rs 3,600 Crore Public Issue

Tenneco Clean Air India Limited has announced the price range for its Initial Public Offering (IPO), setting it between Rs 378 and Rs 397 per share. This public issue is designed to raise approximately Rs 3,600 crore. Based on the higher end of the price band, the company's valuation could surpass Rs 16,000 crore.

The IPO subscription window will be open from November 12 to November 14, 2024. Anchor investors will have their allocation on November 11. The company anticipates its shares will begin trading on Indian stock exchanges on November 19, 2024.

Market sentiment appears strong, with unofficial grey market trading indicating a Grey Market Premium (GMP) of about Rs 85 per share. This suggests a potential listing gain of around 21.41 percent, reflecting considerable investor interest. The promoters of Tenneco Clean Air India include Tenneco Mauritius Holdings Ltd, Tenneco (Mauritius) Ltd, Federal-Mogul Investments BV, Federal-Mogul Pty Ltd, and Tenneco LLC. As a subsidiary of the US-based Tenneco Group, the company specializes in manufacturing and supplying clean air, powertrain, and suspension solutions for Indian original equipment manufacturers (OEMs) and for export markets.

Impact: This IPO offers investors an opportunity to participate in a company within the automotive component sector. Strong investor demand, indicated by the GMP, could lead to positive listing gains and boost confidence in the sector. The funds raised are intended to achieve the benefits of listing on stock exchanges, potentially aiding future growth. Rating: 7/10

Definitions: * **IPO (Initial Public Offering)**: A process where a private company offers its shares to the public for the first time, becoming a publicly traded entity. * **Price Band**: The range within which investors can place bids for shares during an IPO. The final issue price is determined after the bidding closes. * **GMP (Grey Market Premium)**: An unofficial indicator of demand for an IPO, showing the premium at which shares trade in unofficial markets before official listing. A positive GMP often signals strong demand. * **OEM (Original Equipment Manufacturer)**: A company that manufactures parts or products that are used in another company's final product under the latter's brand name. * **OFS (Offer for Sale)**: A type of IPO where existing shareholders sell their shares to the public, with the proceeds going to the sellers rather than the company itself.