Core Viewpoint - Tenneco Clean Air India plans to raise ₹3,600 crore through an IPO, with a significant reduction in the promoter group's stake from 97.3% to 74.8% post-IPO, while the company shows strong market leadership but has experienced single-digit revenue growth over the past two years [5]. Business - Tenneco India operates in two divisions: clean air solutions and shock absorbers, with over 60% of its revenue derived from its top five customers [5]. - The company is net cash positive and is the largest supplier of Clean Air Solutions to Indian commercial trucks and off-highway segments, holding a market share of 57% and 68% respectively [5]. - It is also the largest supplier of shock absorbers and struts to Indian passenger vehicles, with a market share of 52% [5]. Financials - Revenue increased to ₹4,890.4 crore in FY25 from ₹4,827.4 crore in FY23, with value-added revenue (excluding passthrough sales) rising by 6% annually to ₹4,380.1 crore [5]. - Net profit surged by 20.5% to ₹553.1 crore between FY23 and FY25 [5]. - The operating margin (Ebitda margin) improved to 16.7% in FY25 from 11.8% in FY23, outperforming peers who have margins between 10-28% [5]. - Royalty expenses as a percentage of revenue decreased to 2.3% in FY25 from 4.7% in FY24 [5]. - Return on capital employed (ROCE) rose to 56.8% in FY25 from 33.5% in FY23 [5]. Valuation - The company is seeking a price-earnings multiple of 29, compared to a range of 18-86 for peers such as SKF India, Sona BLW Precision Forging, and Gabriel India [4][5].