Tenneco Clean Air India shares debut at 27% premium to IPO price

Shares of US-based Tenneco Group backed automotive component manufacturer Tenneco Clean Air India made a strong debut on Dalal Street on Wednesday, November 19, listing at a premium of 27% to its issue price.

The stock opened at ₹505 on the NSE, a 27.20% premium to the issue price of ₹397. On the BSE, it debuted at ₹498, which was at a 25.4% premium.

Grey market platforms had pegged the company's GMP at 26% on listing day. These GMP indicators are speculative and often differ from the actual listing price.

The ₹3,600 crore initial share sale was open for subscription between November 12 and 14.

The issue saw robust demand across investor categories. It was subscribed 58.83 times, receiving bids for 3.92 billion shares against 6.66 crore shares on offer.

The company had fixed a price band of ₹378 to ₹397 per share.

The IPO was entirely an offer for sale by promoter Tenneco Mauritius Holdings, meaning the company will not receive any proceeds from the issue.

Ahead of the launch, Tenneco Clean Air India raised ₹1,080 crore from anchor investors. Global names such as Nomura Funds, Fidelity, BlackRock, Government Pension Fund Global, Abu Dhabi Investment Authority and Goldman Sachs participated.

Company overview

Tenneco Clean Air India manufactures and supplies critical, highly engineered and technology-intensive clean air, powertrain and suspension solutions for Indian original equipment manufacturers and export markets.

Its customer base spans OEMs across passenger vehicles, commercial vehicles including commercial trucks and off-highway equipment, as well as industrial and other applications such as generator sets, small commercial vehicles below 3.5 tons, and two and three-wheelers.

The company also serves the aftermarket through Motocare India Private Limited, a subsidiary of Tenneco LLC.

JM Financial, Citigroup Global Markets India, Axis Capital and HSBC Securities and Capital Markets India were the merchant bankers for the IPO.