Tenneco Clean Air India Ltd, part of the US-based Tenneco Group, has filed preliminary papers with India’s capital markets regulator, Sebi, for a ₹3,000 crore initial public offering (IPO). The IPO is entirely an Offer for Sale by the promoter, Tenneco Mauritius Holdings Ltd, aiming to achieve the benefits of listing without issuing new equity.
Tenneco Clean Air India files for IPO with Sebi, seeks to raise ₹3000 cr
Key Takeaways:
- Tenneco Clean Air India filed for a ₹3,000 crore IPO with Sebi.
- The IPO is entirely an Offer for Sale by Tenneco Mauritius Holdings Ltd.
- The company will not receive proceeds from the IPO; funds go to the selling shareholder.
- The objective of the IPO is to achieve the benefits of listing.
- Tenneco Clean Air India is part of the US-based Tenneco Group.
Tenneco Clean Air India Seeks Listing with ₹3,000 Crore IPO
Tenneco Clean Air India Ltd, a subsidiary of the US-headquartered Tenneco Group, has filed preliminary papers with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO) amounting to ₹3,000 crore.
An Offer for Sale by Promoters
According to the draft red herring prospectus (DRHP), the proposed IPO is entirely an Offer for Sale (OFS) by the promoter, Tenneco Mauritius Holdings Ltd, with no fresh equity issuance. This means that the existing shareholder is selling a portion of its stake, and the company’s equity base remains unchanged.
“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 draft papers stated.
Objective: Benefits of Listing
The primary objective of the IPO is to achieve the benefits of listing. By going public, Tenneco Clean Air India aims to enhance its visibility, unlock value, and provide liquidity to its existing shareholders.
About Tenneco Clean Air India
Tenneco Clean Air India is part of the Tenneco Group, a US-based automotive component supplier. The company manufactures and supplies critical, highly engineered, and technology-intensive clean air solutions. Its products are essential for vehicles to meet emission regulations and performance standards.
Promoters and Shareholding
The promoters of the company include Tenneco Mauritius Holdings Ltd, Tenneco (Mauritius) Ltd, Federal-Mogul Investments B.V., Federal-Mogul Pty Ltd, and Tenneco LLC. These entities are part of the global Tenneco network, reflecting a strong international backing.
Conclusion
By pursuing an IPO through an Offer for Sale, Tenneco Clean Air India is positioning itself to reap the advantages of being a listed entity while providing an opportunity for its promoter to divest holdings. The move underscores the company’s commitment to growth and adherence to regulatory standards in India’s dynamic automotive sector.