MUMBAI: Tenneco Clean Air India, a part of the US-headquartered Tenneco Group, and the largest domestic player in the suspension, powertrain, and exhaust segments of the automotive industry controlling half the market pie, has announced the price-band for its Rs 3,600-crore offer for sale only primary issue at Rs 378-397/share.
The upwardly revised issue size from earlier planned Rs 3,000 crore, will value the company at Rs 16,000 crore at the upper end of the price band. The issue IPO is an entirely an OFS by the promoter Tenneco Mauritius Holdings, with no fresh equity issuance, the management told reporters here Friday. The issue will open on November 12.
Since this is only an OFS, the company will not receive any proceeds from the IPO and all funds raised will go directly to the selling shareholder.The company has raised its issue size to Rs 3,600 crore from Rs 3,000 crore planned earlier, according to the draft papers filed in June.
The objective of the IPO is to achieve the benefits of listing, the papers stated. Tenneco Mauritius Holdings, Tenneco Mauritius, Federal-Mogul Investments, Federal-Mogul, and Tenneco 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 domestic OEMs and export markets, which are primarily to Tenneco Europe. According to market observers tracking grey market activity, shares of Tenneco are commanding a premium of about 21 percent now.
Online broker reviewer Investorgain quoted a grey market premium of Rs 85/share, indicating a potential listing gain of around 21.41%.In the exhaust market it commands 52% of the domestic market while its share in the suspension market is 48%.The management also said the company will combine both its subsidiaries, which between then run 12 plants and two R&D centres, into a single entity some time later after the listing as the IPO covers all the three divisions of its operations and not just the exhaust systems business. However they did not offer a timeline for the same.