Tenneco Clean Air IPO Subscribed 2.65 Times on Day 2; Strong Institutional and Retail Demand

Market Performance

Tenneco Clean Air India’s IPO has seen strong traction on Day 2 of bidding, with total subscription rising to 2.65 times as of 3:30 pm on Thursday. Institutional investors and retail participants both played a significant role in driving the demand.

• QIB segment: Subscribed 2.29 times, led by foreign institutional investors (FIIs)
• Non-Institutional Investors (NIIs): Subscribed 6.27 times, bidding for 8.95 crore shares against 1.43 crore reserved
• Retail investors: Subscription reached 1.31 times, with 4.36 crore shares bid

The steady surge in interest reflects investor confidence in the company’s business fundamentals and strong market positioning.

Institutional Participation

After a relatively slow start, the Qualified Institutional Buyer (QIB) segment picked up momentum:

• FIIs bid for 3.9 crore shares.
• Domestic institutions placed smaller but consistent bids.
• Mutual funds accounted for 25.2 lakh shares.

The institutional demand complements the strong anchor investor interest seen ahead of the public IPO.

Non-Institutional Investors Lead Demand

Non-institutional investors have been the biggest contributors so far:

• Large NIIs (applications above ₹10 lakh) subscribed 6.39 times.
• Small NIIs (₹2–10 lakh) subscribed 6.02 times.

The accelerated participation from high-net-worth and proprietary investors indicates strong market confidence in the IPO.

Retail Participation Strengthens

Retail investors also showed robust interest:

• Subscription reached 1.31 times.
• The majority opted for cut-off bids, signaling willingness to pay at the upper end of the price band (₹378–397)

IPO Details

• Issue type: Entirely Offer-for-Sale (OFS) by promoter Tenneco Mauritius Holdings
• Price band: ₹378–397 per share
• Listing date: November 19 on NSE and BSE
• Anchor funding: ₹1,080 crore raised from 58 anchor investors, including major domestic and global institutions

Company Overview

Tenneco Clean Air operates 12 manufacturing facilities and supplies clean air, powertrain, and suspension systems to leading OEMs, including Maruti Suzuki, Tata Motors, Mahindra & Mahindra, Hyundai, Ashok Leyland, and Bajaj Auto.

• FY25 net profit: ₹552 crore, up 32.5% YoY
• EBITDA margin: 16.7%
• Market share: 57% in clean-air solutions for commercial trucks, 52% in shock absorbers and struts for passenger vehicles

The IPO does not involve raising fresh capital, as it is entirely an OFS.

Summary

Tenneco Clean Air’s IPO has gained strong momentum on Day 2, driven by both institutional and retail demand. With robust business fundamentals, solid market share, and a diversified client base, the IPO has attracted significant investor interest, reflecting confidence in the company’s growth story.