Tenneco Clean Air IPO: Check IPO Date, Lot Size, Price & Details

About the Company:

Tenneco Clean Air India Limited (TCAIL) is a leading automotive components manufacturer, specializing in clean air, powertrain, and advanced ride technology systems. The company designs, engineers, and manufactures critical parts that help vehicles meet emission standards, improve fuel efficiency, and enhance driving comfort. Its product portfolio includes exhaust systems, catalytic converters, mufflers, manifolds, and suspension components such as shock absorbers and struts. These systems play a key role in controlling emissions, reducing noise, and ensuring smoother vehicle performance across different driving conditions.

TCAIL primarily caters to Original Equipment Manufacturers (OEMs) in the passenger vehicle, commercial vehicle, and off-highway equipment segments. By integrating global technologies from its parent company, Tenneco Inc. (USA), the firm delivers advanced, reliable, and efficient solutions tailored to Indian market needs. The company’s “Clean Air” division focuses on exhaust after-treatment and emission control systems, while its “Powertrain” and “Ride Performance” divisions handle components related to vehicle dynamics, comfort, and safety.

With twelve state-of-the-art manufacturing facilities across India, TCAIL maintains a strong domestic footprint and supports major automotive brands through localized production, engineering, and technical capabilities. The company’s operations are built on technological innovation, precision manufacturing, and a strong focus on sustainability — aligning with global trends toward cleaner and more efficient mobility. As India tightens emission regulations and the shift toward greener transportation accelerates, Tenneco Clean Air India stands as a vital player in enabling the transition through its advanced components and deep integration within the country’s automotive value chain.

IPO Details:

Objects of the Offer:

The IPO is a 100% Offer for Sale (OFS) through which the selling shareholders will divest a part of their equity stake. The company will not receive any proceeds from the offer, and the listing is intended to provide liquidity to existing shareholders and enhance the Company’s public profile.

Key Strengths and Opportunities

• Leadership in critical automotive sub-segments
  TCAIL holds dominant market positions in several high-barrier automotive component segments, such as clean-air solutions for commercial trucks and advanced ride technologies for passenger vehicles. This provides a structural competitive advantage, making it a preferred supplier to OEMs.
• Strong global parent linkage and technology access
  Being part of the Tenneco Inc. group gives TCAIL access to global R&D, proprietary modules and advanced manufacturing know-how. This helps Indian operations localise high-cost technology at competitive price-points.
• Broad product portfolio across clean-air, powertrain and suspension
  TCAIL’s diversified product mix, encompassing clean-air (after-treatment systems), powertrain components and advanced ride/suspension systems reduces single-segment dependency and allows cross-selling into OEM platforms. This versatility cushions cyclical downturns in one vehicle category.
• Strategically located manufacturing footprint and integrated supply-chain
  with 12 manufacturing facilities across major automotive hubs in India and a strong domestic procurement base (90% raw-material localization), TCAIL benefits from lower logistics & raw-material risks, while proximity to OEMs enhances responsiveness.
• Tailwinds from regulatory and structural trends in Indian auto industry
  Stricter emission norms, thrust on cleaner mobility and growing demand for advanced safety/ride technologies give TCAIL a favorable demand environment. The company is well-positioned to benefit from these long-term structural shifts.

Key Risks:

• Dependence on automotive OEM demand & cyclicality
  The company’s sales are closely tied to the capital-goods cycle in the Indian & global automotive industry. If vehicle production falls or OEMs reduce orders, the company may face under-utilisation of capacity and margin pressure.
• Raw material cost volatility and margin pressure
  The manufacturing of clean-air, powertrain and suspension systems requires significant amounts of steel, alloys and specialised components. Sharp rises in input prices or inability to pass them fully to customers could squeeze profitability.
• Technological/regulatory obsolescence risk
  With emission norms tightening and vehicle architectures evolving (EVs, hybrids, alternative fuels), the company must continually upgrade its technology. Failure to do so could erode competitive position or require heavy investment.
• Customer concentration risks
  Although the company caters to multiple OEMs across segments, its business remains heavily dependent on a few key clients — the top 10 customers contribute around 80% of total revenue. This concentration heightens vulnerability; if any major customer reduces orders, delays production programs, or shifts sourcing to competitors, it could materially impact the company’s sales and profitability.
• Foreign-exchange, raw-material import and global commodity exposure
  Even though much production is localised, sourcing of some critical components or technologies might involve imports and thus FX risk. Commodity price swings and global sourcing vulnerabilities can adversely affect cost structure and margins.

Financial Snapshot:

Peer Comparison:

Conclusion

Tenneco Clean Air India Ltd stands out as a high-quality player in the auto component space, backed by strong financial performance, efficient capital utilization, and a robust technology edge. The company has demonstrated consistent profitability with improving margins — EBITDA margin expanded from 11.2% in FY24 to 16.7% in FY25 — while maintaining an impressive ROE of 42.6% and ROCE of 56.8%, reflecting efficient asset use and strong cash generation. Despite being a 100% OFS, the company’s financial health remains strong, supported by negligible debt and prudent working capital management. Compared to peers like Bosch, Timken, and SKF, TCAIL delivers superior return ratios at a relatively reasonable valuation (P/E of 29x vs. industry average of 35 x). With structural tailwinds from stricter emission norms, rising localization, and sustained OEM partnerships, the company is well-positioned to benefit from the next phase of clean mobility growth. Considering its healthy fundamentals, superior return profile, and strong market positioning, we recommend a ‘Subscribe for Listing Gains’ on the IPO.

IPO Allotment

Find out the allotment status for the Emmvee Photovoltaic IPO by checking the MUFG Intime India IPO Application Status page.