Tenneco Clean Air Debuts at 27% Premium on Dalal Street

Tenneco Clean Air delivered an upbeat debut on Dalal Street on Wednesday, opening significantly above its issue price and rewarding investors who subscribed to the IPO. The shares were listed at ₹505 on the NSE and ₹498 on the BSE, marking a 27% premium over the issue price of ₹397.

The company’s debut comes after an exceptionally strong response to its ₹3,600 crore IPO, which ran from November 12 to 14. The issue, an entirely offer-for-sale transaction involving 9.07 crore shares from Tenneco Group promoters, did not raise fresh capital for the firm.

Despite that, investor appetite remained robust due to Tenneco Clean Air’s established position in the clean-air solutions and ride-performance systems market, alongside the credibility of its global parent and longstanding partnerships with major automotive manufacturers.

IPO Subscription: Massive Demand Across Categories

The IPO was subscribed 61.79 times overall, reflecting strong demand across investor segments:

• QIBs: 174.78 times

• Non-institutional investors: 42.79 times

• Retail investors: 5.37 times

Tenneco Clean Air had offered 6.34 crore shares, but received bids worth ₹1,55,708 crore, signalling widespread interest from domestic and international investors.

Ahead of the listing, the grey market premium (GMP) hovered around ₹103, hinting at a listing near ₹500 — a prediction that closely matched Wednesday’s opening price.

Analysts Say Valuation Looks Attractive

According to Rajan Shinde of Mehta Equities, the IPO was priced reasonably.

“Based on FY 2026 annualized earnings, the post-issue PE comes to 23.8x, which appears fair versus the industry range of 45–50x,” he said, noting the company’s sector leadership and favourable global regulatory backdrop.

Brokerage Geojit also gave a ‘Subscribe’ rating, highlighting:

• Strong parentage

• Leadership in clean-air and ride-performance systems

• Deep OEM relationships

• Healthy return ratios

It valued the company at 29x FY25 P/E at the upper price band.

Disclaimer: Analyst views are their own. Investors should consult a certified advisor before making decisions.