Tenneco Clean Air India Sets IPO Price Band at ₹ 378-397/Share; Eyes Valuation of ₹ 16,000 Cr

Tenneco Clean Air India Ltd, part of the US-headquartered Tenneco Group, on Friday announced a price band of ₹ 378-397 per share for its upcoming Initial Public Offering (IPO), aiming for a valuation of over ₹ 16,000 crore at the upper end.

The ₹ 3,600-crore IPO will be opened for public subscription on November 12 and conclude on November 14. Anchor investors will be allocated shares on November 11, the company said in a public announcement.

The proposed IPO is entirely an Offer for Sale (OFS) by the promoter Tenneco Mauritius Holdings Ltd, with no fresh equity issuance. The company has raised its issue size to ₹ 3,600 crore from ₹ 3,000 crore planned earlier, according to the draft papers filed in June.

Since the issue is entirely an OFS, the company will not receive any proceeds from the IPO and all funds raised will go directly to the selling shareholder.

The objective of the IPO is to achieve the benefits of listing, the papers stated. Tenneco Mauritius Holdings Ltd, Tenneco (Mauritius) Ltd, Federal-Mogul Investments BV, Federal-Mogul Pty LTD, and Tenneco LLC are the promoters of the company.

Tenneco Clean Air India is part of the Tenneco Group, a US-headquartered automotive component supplier. It manufactures and supplies critical, highly engineered and technology-intensive clean air, powertrain and suspension solutions tailored for Indian OEMs and export markets.

According to the company, half of the issue size has been reserved for qualified institutional buyers, 35 % for retail investors and the remaining 15 % for non-institutional investors.

Further, investors can bid for a minimum of 37 shares and in multiples thereof.

Shares of Tenneco Clean Air India will be listed on the bourses on November 19.

The IPO is being managed by JM Financial, Citigroup Global Markets India, Axis Capital and HSBC Securities and Capital Markets (India) Private Limited.