Tenneco Clean Air India IPO: The good and the bad

Summary: Tenneco Clean Air India, a leading supplier of automotive parts, is set to go public on November 12, 2025. We provide a detailed analysis of its past track record, pros and cons to help you better decide whether the IPO is worth subscribing to. Tenneco Clean Air India, an automotive component supplier, will open its IPO (initial public offering) on November 12, 2025 and close on November 14, 2025. The Rs 3,600 crore IPO will be completely an offer for sale (OFS). Here, we breakdown the company’s business, financials, strengths, risks and valuation to help you make an informed investment decision. What the company does Tenneco Clean Air India, part of the US-based Tenneco Group, is a leading Tier-I automotive component supplier with a legacy in India dating back to 1979. The company designs and manufactures advanced clean air, powertrain and suspension solutions for major Indian and global OEMs (original equipment manufacturers). It dominates key segments, holding a 57 per cent market share in clean air solutions for commercial trucks, 68 per cent for off-highway vehicles, and 52 per cent in shock absorbers and struts for passenger vehicles. As of June 2025, Tenneco Clean Air India operates 12 manufacturing facilities across seven states and one union territory. Track record and valuation When it comes to past financials, Tenneco Clean Air India appears to be on a modest ground. While its earnings before interest and tax (EBIT) and net income (PAT) saw double-digit growth during FY23-25, at 23.1 per cent and 20.4 per cent, respectively, revenue only surged by 0.7 per cent. Impressively, the company managed to significantly trim its debt, declining by 21 per cent during the same period. At the upper end of the price band (Rs 397), Tenneco Clean Air India’s stock is expected to be valued at 28 times its TTM earnings and nearly 10 times its book value. In comparison, its peers trade at a P/E and P/B of almost 50 times and 8 times, respectively. Tenneco Clean Air India IPO details Total IPO size (Rs cr) 3,600 Offer for sale (Rs cr) 3,600 Fresh issue (Rs cr) - Price band (Rs) 378-397 Subscription dates November 12-14, 2025 Purpose of issue Offer for sale (OFS) Post-IPO M-cap (Rs cr) 16,023 Net worth (Rs