Key Points:
- Premium Listing: Expected to list with 30%+ grey market premium.
- Fair Valuation: IPO seen as fully priced but backed by strong fundamentals.
- Growth Potential: Strong position in clean-air tech supports long-term growth.
Shares of Tenneco Clean Air India are expected to debut at a premium on Nov. 19, supported by strong grey market activity and investor interest in the company’s clean air systems business. Platforms tracking unofficial trading indicated a grey market premium above 30 percent, suggesting a potentially solid listing for the automotive component maker.
Platforms monitoring the grey market placed the company’s premium at more than 30 percent ahead of the listing. Investorgain recorded a premium of Rs 120 per share, indicating an estimated listing gain of about 30.23 percent. Another tracker estimated the premium at 31 percent in the unregulated market.
Expert Views on Valuations
Narendra Solanki, Head of Fundamental Research – Investment Services at Anand Rathi Shares and Stock Brokers, said the issue of Tenneco Clean Air India appears “fully priced.” He noted that the IPO is valued at a price-to-earnings multiple of 23.8 times FY26 annualised earnings and a market-cap-to-sales ratio of 3.2. He added that the post-issue market capitalisation is projected at roughly Rs 16,023 crore.
According to Solanki, the company’s leadership in clean air systems, its diversified product set, and global-backed innovation support its long-term prospects. He said investors may consider holding the stock after listing to benefit from potential growth in the sector.
Shruti Jain, Chief Strategy Officer at Arihant Capital Markets, said investors could book profits if the stock lists at a strong premium. She added that long-term investors may continue to hold the stock, as the company operates in a niche segment with a competitive product lineup and scope for expansion over the coming years.
Industry Position and Growth Potential
Bhavik Joshi, Business Head at INVasset PMS, said the IPO marks the introduction of Tenneco Clean Air India an automotive component manufacturer with a proven presence in emission control and ride performance systems. He highlighted the company’s established leadership across multiple categories and its steady financial performance in recent years.
Joshi said the company benefits from strong parentage and consistent return ratios, which position it well within the auto component industry. He added that while the valuations may limit sharp listing gains, the business remains well placed for medium- to long-term growth as demand for emission-focused technologies expands.
Background and Context
Tenneco Clean Air India operates in the automotive systems space, focusing on components that help reduce vehicle emissions and improve performance. The company draws on global technological support from its parent organisation and serves a diverse customer base across the mobility ecosystem.
The grey market premium, while unregulated and unofficial, is often used by investors as an early indicator of market sentiment before the listing. A premium above 30 percent suggests that demand for the stock has remained strong through the subscription period and into the listing week.
Market observers noted that interest in companies aligned with emission reduction and cleaner mobility has increased in recent years. The sector continues to attract investor attention as regulatory requirements tighten and automakers adopt cleaner technologies across product lines.
Analysts said the stock’s performance of Tenneco Clean Air India post-listing will depend on broader market conditions, the company’s quarterly results, and its ability to maintain growth in a competitive landscape. Investors are expected to watch the debut closely to assess whether the premium sustains through the first trading sessions.
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