Tenneco India, the domestic arm of US-based auto component manufacturer Tenneco Inc, is gearing up for an initial public offering (IPO) estimated at $400 million. Backed by Apollo Global Management, the company has shortlisted Citi, Axis Bank, HSBC Securities, and JM Financial as its advisors for the offering.

According to sources, Tenneco India plans to go public in FY26, and draft papers for the IPO are likely to be filed between May and June 2025. The company is targeting a valuation between $2 billion and $2.5 billion, though this may change depending on market conditions.

Who is Tenneco India?

Tenneco is a leading global player in automotive components. The company designs, manufactures, and markets products for both original equipment manufacturers (OEMs) and the aftermarket segment. Its key business units include:

• DRiV (aftermarket and ride performance)

• Performance Solutions

• Clean Air Solutions

• Powertrain Solutions

In India, Tenneco has been operating since the 1960s and currently boasts 19 manufacturing plants, six aftermarket distribution centers, and multiple technology hubs. The company employs over 12,000 people in India.

Why is Apollo Listing Tenneco India?

Apollo Global acquired Tenneco Inc in 2022 for $7.1 billion, making it a privately held company. Since then, Apollo has been exploring options to unlock value, and listing Tenneco’s India operations aligns with this strategy.

According to Jim Voss, CEO of Tenneco, India is a key part of the company’s global operations. Speaking to CNBC-TV18, Voss stated:

"India is a key part of our past success, our current success, and certainly our future."

With global supply chain shifts, many OEMs are diversifying away from China, and India’s cost advantage and skilled workforce make it a prime alternative for automotive manufacturing.

Advisors and Financial Plans

Tenneco has engaged Citi, Axis Bank, HSBC Securities, and JM Financial as lead managers for the IPO. The company is still finalizing the issue size and pricing, but the current estimate stands at $400 million.

Key details about the IPO:

• Estimated size: $400 million

• Target valuation: $2-2.5 billion

• Draft filing expected: May-June 2025

• Lead managers: Citi, Axis Bank, HSBC Securities, JM Financial

Growing Trend of Auto Sector IPOs in India

Tenneco India’s IPO follows a trend of multinational auto-component makers listing their Indian subsidiaries. Some recent examples include:

• Carraro Group (Italy) listed its India unit in December 2024

• Hyundai Motor India’s $3.3 billion IPO in October 2024

• Mahle (Germany) considering an Indian listing

• Upcoming IPOs from LG Electronics India and Orkla India

This wave of multinational IPOs indicates strong investor interest in India’s growing automotive sector.

What’s Next for Tenneco India?

With the IPO process officially underway, the next key milestone will be the filing of draft papers in mid-2025. The final valuation and issue size will depend on market conditions and investor sentiment.

As India continues to attract global auto giants, Tenneco’s listing will be closely watched as one of the largest IPOs in the sector. Investors and industry experts will be monitoring how Apollo’s exit strategy plays out in the Indian stock market.

The Current active IPO are Infonative Solutions Limited,Spinaroo Commercial Limited,Retaggio Industries Limited.

The Closed IPOs are  Identixweb Limited, ATC Energies System Limited, Shri Ahimsa Naturals Limited.

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