Tenneco Clean Air IPO opens Nov 12: GMP at 15%; 5 key risks you should know

Tenneco Clean Air aims to raise ₹3,600 crore through an offer for sale of 90.7 million equity shares

Tenneco Clean Air IPO: Tenneco Clean Air, a subsidiary of Tenneco Inc., is set to launch its initial public offering (IPO) on Wednesday, November 12, 2025. The company aims to raise ₹3,600 crore through an offer for sale (OFS) of 90.7 million equity shares. Tenneco Mauritius Holdings is the promoter selling shareholder.

 

Tenneco Clean Air shares will be offered at a price band of ₹378 to ₹397 per share. The minimum application size has been set at 37 shares per lot. The issue will remain open for subscription till Friday, November 14, 2025. The company’s shares are tentatively scheduled to make their D-Street debut on Wednesday, November 19, 2025.

 

MUFG Intime India is the registrar for the issue. JM Financial, Citigroup Global Markets India, Axis Capital and HSBC Securities and Capital Markets (India) are the book-running lead managers. 

 

According to the red herring prospectus (RHP), the company will not receive any fresh funds from the issue, and existing shareholders will sell their stake through the offer. 

Tenneco Clean Air IPO GMP

On Tuesday, November 11, the unlisted shares of Tenneco Clean Air were trading at ₹457 in the grey market, commanding a premium of ₹60 or 15.1 per cent from the upper end price of ₹397.  

Here are the key risks associated with investing in Tenneco Clean Air IPO:

Dependence on parent company: Tenneco Clean Air depends on companies in the Tenneco Group for the license to use Tenneco Group's brands and patented designs, technical know-how, purchase of certain parts and materials, and R&D. Any adverse change in the relationship, including the termination of the License Agreement, may have an adverse impact on the company's performance. 

 

Revenue concentration: The company derived a substantial portion of its operating revenue - 81.35 per cent, 83.44 per cent, 82.04 per cent, 83.87 per cent, and 83.06 per cent - from the passenger vehicle (PV) and commercial vehicle (CV) segments in India during the three months ended June 30, 2025 (Q1FY26) and June 30, 2024 (Q1FY26), and in fiscal 2025 (FY25), FY24, and FY23, respectively. Any unfavourable developments within these sectors in India could negatively affect Tenneco Clean Air’s business performance, operational results, and financial condition.

 

Customer concentration: Tenneco Clean Air relies heavily on its top ten customers for revenue generation. These customers, based on FY25 data, accounted for 80.57 per cent, 82.32 per cent, 81.54 per cent, 83.92 per cent, and 77.79 per cent of Tenneco Clean Air’s revenue from operations during the Q1FY26 and Q1FY25, and in FY25, FY24, and FY23, respectively. Any decision by one or more of these key customers to discontinue sourcing products from the company could materially and adversely impact the company’s business.

 

Impact of emission regulations: The company’s business is significantly influenced by government policies and regulations on emission standards, which directly affect the design, production, and sale of its Clean Air and Powertrain products. With countries, including India, adopting stricter emission norms and zero-emission targets, variations in these regulations have historically impacted, and are expected to continue impacting, the company's revenue.

 

Related party dependence: Tenneco Clean Air relies on Motocare India Private Limited (Motocare), an indirect subsidiary of Tenneco LLC and a group company, for aftermarket sales. It also engages in related-party transactions with other entities within the Tenneco Group in the ordinary course of business and may continue to do so in the future. There can be no assurance that more favourable terms could have been achieved had these transactions been conducted with unrelated parties, which may adversely affect Tenneco Clean Air’s business and operational results.