Private Equity Giant Taps Investment Banks for Public Listing
The private equity powerhouse has appointed four investment banks—Citi, Axis Bank, HSBC Securities, and JM Financial—as advisors for the initial public offering (IPO). Industry sources reveal that the IPO process is in its early stages, with the offering expected to hit the market in FY26.
In a preliminary meeting, Tenneco’s leadership outlined the roadmap for the IPO and assigned roles to the appointed banks. While the final offering size remains undecided, the company is reportedly targeting a $400 million fundraising at a valuation between $2 billion and $2.5 billion. Market dynamics and investor sentiment will play a crucial role in shaping the final issuance strategy. Sources indicate that the draft IPO papers are likely to be filed between May and June.
Apollo Global Management is preparing for Tenneco India’s IPO, appointing four investment banks.
The IPO is tentatively scheduled for FY26, with draft papers expected in May-June.
Tenneco is aiming to raise $400 million at a valuation between $2 billion and $2.5 billion.
Apollo’s Acquisition of Tenneco and Strategic Growth Plans
Apollo Global Management acquired Tenneco in February 2022 through an all-cash deal valued at approximately $7.1 billion, including debt. Following the acquisition, Tenneco transitioned into a privately held entity under Apollo’s portfolio. The planned IPO marks a significant milestone in Apollo’s investment strategy, positioning Tenneco’s Indian operations for independent public trading.
Tenneco is a global leader in automotive components, supplying both original equipment manufacturers (OEMs) and the aftermarket sector. The company operates across multiple verticals, including DRiV, Performance Solutions, Clean Air, and Powertrain. These divisions cater to diverse vehicle segments, including light vehicles, commercial trucks, off-highway and industrial machinery, motorsports, and aftermarket products.
Apollo Global acquired Tenneco for $7.1 billion, transitioning it into a private entity.
Tenneco operates in four key verticals, supplying OEMs and aftermarket customers worldwide.
The planned IPO aims to position Tenneco India as a publicly traded entity.
Tenneco India’s Expanding Footprint and Market Position
Tenneco has been an integral part of India’s automotive industry for several decades. The company’s Indian subsidiary operates 19 manufacturing plants, six aftermarket distribution centers, and multiple technology hubs, employing over 12,000 professionals. India has played a pivotal role in Tenneco’s global success, with the company strengthening its local operations to cater to growing demand.
Jim Voss, CEO of Tenneco, recently emphasized India’s strategic importance, highlighting its role in the company’s past, present, and future growth. In an interaction with CNBC-TV18, Voss noted that global supply chain realignments are favoring India as an alternative manufacturing hub to China. Major OEMs are reevaluating their sourcing strategies, with India emerging as a preferred destination due to its competitive cost structure, skilled workforce, and advanced technology capabilities.
Tenneco India operates 19 manufacturing plants and employs over 12,000 people.
The company sees India as a key market amid global supply chain realignments.
OEMs are shifting supply chains from China to India, boosting the country’s automotive sector.
Tenneco’s Prestigious Clientele and Market Presence
Tenneco supplies components to some of the world’s most renowned automobile manufacturers, further strengthening its market presence. Its clientele includes industry giants such as BMW, Ford, Nissan, Mercedes-Benz, Volvo, Toyota, Volkswagen, Great Wall Motors, and SAIC Motors. The company’s extensive partnerships underline its technological expertise and manufacturing capabilities.
With the Indian automotive industry witnessing robust growth, Tenneco is well-positioned to leverage rising demand for high-quality components. The shift toward electric vehicles (EVs) and advanced automotive technologies further enhances the company’s prospects, as automakers seek reliable suppliers with strong engineering expertise.
Tenneco’s clients include top global automakers like BMW, Ford, and Toyota.
The company is well-placed to benefit from India’s expanding automotive industry.
Growing EV adoption is likely to create additional opportunities for Tenneco’s components.
MNC IPOs on the Rise in India
Tenneco India’s planned listing is part of a broader trend of multinational corporations (MNCs) bringing their Indian subsidiaries to the stock market. The country has witnessed several high-profile MNC IPOs in recent years, as global firms seek to unlock value from their Indian operations.
Recent notable listings include Hyundai Motor India’s blockbuster $3.3 billion IPO in October 2024, marking India’s largest-ever public offering. Additionally, Italy’s Carraro Group, a leader in agricultural transmission systems, listed its India unit in December 2024 following an IPO first reported in June. Other global firms, such as German car parts manufacturer Mahle, LG Electronics, and Orkla India (owner of MTR & Eastern Condiments), are also reportedly considering IPOs.
Tenneco’s move aligns with this trend, reflecting growing investor interest in high-quality global brands operating in India. With the country’s capital markets becoming increasingly attractive for foreign companies, more multinational firms are expected to follow suit.
India is witnessing a surge in MNC IPOs, with Hyundai Motor India’s $3.3 billion issue being the largest.
Italy’s Carraro Group and German auto parts maker Mahle are among recent MNCs listing in India.
Tenneco’s IPO reflects the growing investor appetite for foreign automotive players in the Indian market.
