The Tenneco India IPO has sparked curiosity among investors. While the company shows strong financials and a leading market position, many are questioning — is Tenneco India really worth what Apollo Global Management paid for its global business?
Let’s take a closer look at what’s happening with Tenneco India and what this IPO means for investors.
What’s the Buzz Around Tenneco India IPO?
Tenneco India is known for making parts that help vehicles reduce emissions and run smoothly. It’s a big name in the automotive components industry, especially in the clean air and ride performance segment.
The company’s IPO has drawn attention because of its connection with Apollo Global Management, which took over Tenneco’s global operations in 2022. However, India contributes only about 3% of Tenneco’s total global revenue, making investors wonder if the valuation is fair.
A Quick Throwback: Apollo’s Big Move
Back in 2022, Apollo Global Management acquired Tenneco globally. Around the same time, Apollo’s investment arm made an open offer for Federal-Mogul Goetze (India) Ltd at ₹275 per share.
But here’s the twist — the stock was already trading around ₹320, so the market didn’t show much interest. Analysts, including Atul Karwa from HDFC Securities, expected this outcome and noted that “the open offer may not get much response.” And they were right — the offer failed.
This move hinted that Apollo’s India operations might not be a top priority in its global expansion strategy.
Understanding Tenneco India’s Business
Tenneco Clean Air India Limited (part of Tenneco Group) designs and manufactures systems that help reduce emissions and improve vehicle performance. The company works with top automobile manufacturers and has a good reputation in the Indian market.
Its chief executive officer, Arvind Chandrasekharan, believes that the company’s strong technical base and customer relationships give it an edge. However, the company also faces new challenges — especially with the shift toward electric vehicles (EVs).
The Challenges Ahead
While the fundamentals of Tenneco India are strong, its future growth story isn’t entirely clear. Around half of its revenue still depends on products for traditional fuel-based vehicles. As EV adoption increases, the company might see pressure on this part of its business.
Moreover, the company’s capital expenditure (capex) has been quite low, raising questions about its readiness to adapt to the changing automotive landscape.
Still, Tenneco India IPO offers investors a chance to be part of a leading auto component brand with a stable revenue base. The key question remains — can it reinvent itself fast enough in an electric future?
Investor Takeaway
The Tenneco India IPO presents both strength and risk. The company’s strong brand name, global backing, and market leadership are definite positives. But the uncertainty around future growth and low capex spending are valid concerns.
For now, investors are watching closely to see whether Tenneco India can deliver value similar to what Apollo envisioned when it acquired the global operations.
Disclaimer: This article is meant for educational and informational purposes only. It should not be taken as investment advice. Please do your own research or consult a financial expert before making any investment decisions.
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