Tenneco Clean Air India garners Rs 1,080 cr from anchor investors ahead of IPO

New Delhi, Nov 11 (PTI) Tenneco Clean Air India Ltd, part of the US-based Tenneco Group, on Tuesday said it has raised Rs 1,080 crore from anchor investors, just a day before opening of its initial public offering (IPO) for public subscription.

The anchor book saw participation from 58 entities including SBI Mutual Fund (MF), ICICI Prudential MF, HDFC MF, SBI Life Insurance, ICICI Prudential Life Insurance, Nomura Funds Ireland, Fidelity, BlackRock, Norway's Government Pension Fund Global, Abu Dhabi Investment Authority, and Goldman Sachs, according to a circular uploaded on BSE's website.

As per the circular, the company allocated a little over 2.72 crore equity shares at an anchor investor offer price of Rs 397 per share, raising a total of Rs 1,079.99 crore.

Among these, more than 1.47 crore equity shares, or 54.15 per cent, were allocated to 17 domestic mutual funds, which have applied through a total of 41 schemes.

The Rs 3,600-crore IPO will be opened for public subscription on November 12 and conclude on November 14. The company has fixed a price band at Rs 378-397 per share.

It aims for a valuation of over Rs 16,000 crore at the upper end.

The proposed IPO is entirely an Offer for Sale (OFS) by the promoter Tenneco Mauritius Holdings Ltd, with no fresh equity issuance. The company has raised its issue size to Rs 3,600 crore from Rs 3,000 crore planned earlier, according to the draft papers filed in June.

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 objective of the IPO is to achieve the benefits of listing, the papers stated.

Tenneco Mauritius Holdings Ltd, Tenneco (Mauritius) Ltd, Federal-Mogul Investments BV, Federal-Mogul Pty LTD, and Tenneco LLC are the promoters of the company.

Tenneco Clean Air India manufactures and supplies critical, highly engineered and technology-intensive clean air, powertrain and suspension solutions tailored for Indian original equipment manufacturers and export markets.

According to the company, half of the issue size has been reserved for qualified institutional buyers, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.

Further, investors can bid for a minimum of 37 shares and in multiples thereof.

Shares of Tenneco Clean Air India will be listed on the bourses on November 19.

The IPO is being managed by JM Financial, Citigroup Global Markets India, Axis Capital and HSBC Securities and Capital Markets (India) Private Ltd. PTI HG HVA