Tenneco Clean Air India Promoter Offloads 2.75% Stake at Rs.16,023-Crore Valuation Ahead of IPO
Promoter Offloads 2.75% Stake in IPO-Bound Tenneco Clean Air India at ₹16,023 Crore Valuation
In a significant pre-IPO development, Tenneco Mauritius Holdings, the promoter of Tenneco Clean Air India, has sold a 2.75 percent stake in the automotive component manufacturer in a secondary market transaction, valuing the company at ₹16,023 crore. The deal comes just weeks after the Securities and Exchange Board of India (SEBI) approved the company’s ₹3,000-crore initial public offering (IPO).
According to regulatory filings and a public notice, the stake sale—executed on October 30—involved the transfer of 1.1 crore equity shares at a price of ₹397 per share, amounting to ₹440 crore in total. The transaction, completed ahead of the IPO, underscores strong investor appetite for Tenneco Clean Air India amid rising interest in India’s clean mobility and auto component sectors.
Following the transaction, the promoter’s holding in Tenneco Clean Air India has reduced from 85.43 percent to 82.69 percent. The offloaded stake was distributed among 14 institutional investors, signaling diversified interest from domestic and global funds.
Among the new investors, 360 ONE Special Opportunities Fund emerged as the largest participant, acquiring 18.89 lakh shares (0.47 percent) for approximately ₹75 crore. Other significant buyers included Kotak Mahindra Life Insurance, which picked up shares worth ₹60 crore, and WhiteOak Capital, investing ₹55 crore.
Additionally, marquee institutional names such as SBI Mutual Fund, Axis New Opportunities AIF, Think India Opportunities Master Fund, Prashant Jain’s 3P India Equity Fund, and VQ Fastercap Fund also participated in the transaction—indicating robust institutional confidence in the company’s long-term growth prospects.
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The pre-IPO placement reflects growing optimism around India’s automotive component manufacturing ecosystem, which is witnessing strong growth driven by clean air technologies, stringent emission norms, and sustainability goals by automakers.
Tenneco Clean Air India, headquartered in Gurugram, operates under the umbrella of the US-headquartered Tenneco Group, a global leader in powertrain, suspension, and clean air technologies. The Indian subsidiary is a critical player in Tenneco’s global manufacturing and R&D ecosystem, catering to both domestic OEMs (original equipment manufacturers) and export markets.
With 12 manufacturing facilities and two advanced R&D centers across India, the company has positioned itself as the largest supplier of clean air solutions to commercial vehicle OEMs and a leading provider of shock absorbers and struts for passenger vehicles.
Tenneco Clean Air India boasts an impressive client portfolio, serving 119 customers in fiscal year 2025. Its major clients include Ashok Leyland, Bajaj Auto, Daimler India Commercial Vehicles, Honda Motorcycle & Scooter India, Hyundai Motor India, John Deere India, Mahindra & Mahindra, Maruti Suzuki, Royal Enfield, Tata Motors, Toyota Kirloskar Motor, and VE Commercial Vehicles.
Such a broad and diversified client base not only underscores the company’s operational strength but also highlights its critical role in India’s automotive supply chain, particularly in clean emission systems and sustainable mobility components.
Tenneco Clean Air India filed its Draft Red Herring Prospectus (DRHP) with SEBI on June 30, 2025, seeking approval for its ₹3,000-crore IPO. The market regulator granted its approval on October 3, paving the way for one of the most anticipated listings in the automotive component space this fiscal year.
The IPO will be a pure offer-for-sale (OFS) by Tenneco Mauritius Holdings, meaning that all proceeds from the issue will go directly to the promoter entity. The company itself will not receive any fresh capital from the public offering.
JM Financial, Citigroup Global Markets India, Axis Capital, and HSBC Securities and Capital Markets (India) are acting as the book-running lead managers (BRLMs) for the proposed issue.
At a ₹16,023-crore valuation, the stake sale positions Tenneco Clean Air India among the top-valued auto component manufacturers in India. Analysts tracking the sector note that this valuation reflects growing institutional interest in companies aligned with green and clean mobility trends, particularly as India accelerates toward stricter emission standards and electric vehicle adoption.
Market experts believe that the timing of the transaction—just ahead of the IPO—demonstrates strong pre-IPO confidence and sets a positive tone for the upcoming public issue.
“This transaction signals a healthy appetite among institutional investors for companies in the clean mobility and automotive technology segments. The valuation premium shows that the market is recognizing the company’s leadership and technological capabilities,” said a Mumbai-based investment banker familiar with the deal.
With a robust operational base, marquee clientele, and sustained investor interest, Tenneco Clean Air India is well-positioned for its forthcoming IPO. The company’s focus on clean air technologies, its deep integration with OEM supply chains, and the global expertise of the Tenneco Group provide a strong foundation for long-term growth.
Industry watchers expect the IPO to attract significant institutional participation, given the ongoing market preference for high-quality industrial and manufacturing plays backed by global technology leaders.
As India’s automotive industry transitions towards sustainability, Tenneco Clean Air India stands at the intersection of innovation and regulatory compliance — a narrative that investors are increasingly betting on.
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