The initial public offering (IPO) of Tenneco Clean Air India Ltd, a subsidiary of Tenneco Inc., received a robust response from investors on the final day of bidding.
The issue, which witnessed a muted response on the opening day, gained momentum on the second and third days, with the overall issue receiving bids for 392 crore shares against the 6.34 crore shares on offer, resulting in a subscription rate of 61.79 times.
Qualified institutional buyers showed strong interest, with their portion subscribed 174.78 times, as they placed bids for 316 crore shares compared with the allotted 1.81 crore shares. The non-institutional buyers segment reflected similar enthusiasm, with its portion booked 42 times.
The retail quota, however, showed weak interest as their portion was booked at 5.37 times, as per the exchange data.
Tenneco Clean Air IPO Details
The ₹3,600 crore IPO is entirely an offer for sale of 9.07 crore shares. The price band for the issue was set between ₹378 and ₹397 apiece. The lot size for retail investors was set at 37 shares per lot, requiringRs 14,689 for the minimum investment.
The allotment for the issue is expected to be completed on November 17, with shares scheduled to list on both the NSE and BSE on Friday, November 19.
Tenneco Clean Air Grey Market Premium
According to market sources, the grey market premium (GMP) for the Tenneco Clean Air IPO stands at ₹76 per share as of today, indicating that the shares are likely to list higher than the issue price.
Considering the GMP and the IPO’s upper-band issue price of ₹397, the stock is expected to debut at around ₹473, representing a 19.14% premium. The grey market premium reflects the expected difference between an IPO’s issue price and its anticipated listing price in the unofficial market.
However, analysts caution that GMP is only an early indicator and should not be the sole factor in making investment decisions.
About Tenneco Clean Air
The company is part of the Tenneco Group, a U.S.-headquartered global Tier I automotive component supplier that manufactures and supplies critical, highly engineered, and technology-intensive clean air, powertrain, and suspension solutions tailored for Indian OEMs and export markets.
The company’s products are used in passenger vehicles and commercial vehicles, which include commercial trucks, off-highway vehicles, and industrial and other applications. These applications comprise generator sets, small commercial vehicles with a gross vehicle weight of less than 3.5 tons, two-wheelers, and three-wheelers.
It also sells to the aftermarket primarily through Motocare India Private Limited, a subsidiary of Tenneco LLC and its group company.
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