Business Profile of Techno Clean Air India Limited
Techno Clean Air India Limited is a subsidiary of Tenneco Incorporation which is global leader in designing and manufacturing clean air and powertrain products for automotive applications. Tenneco Clean Air India Limited was incorporated in 2018 and operates within the Clean Air division, focusing on emission control technologies for both light and commercial vehicles. Under company product portfolio includes catalytic converters, diesel particulate filters (DPFs), mufflers, and exhaust pipes. In on shore market, company provides advanced exhaust and after-treatment systems, helping vehicle manufacturers meet increasingly stringent emission norms. The company has 12 manufacturing facilities, including seven Clean Air & Powertrain Solutions facilities and five Advanced Ride Technology facilities, across seven states and one union territory in India.
Objective of Techno Clean Air India IPO
As per the draft red hearing prospects, the IPO issue consists only offer for sale. The offer for sale issue consists of XXXX shares at the face value of ₨ 10.00 each aggregating up to ₹ 30,000.00 millions. There are OFS issues and main objective of company is to achieve the benefits of listing the Equity Shares on the Stock Exchanges.
Details of Techno Clean Air India IPO
| IPO Open Date | N.A. |
| IPO Close Date | N.A. |
| Basis of Allotment | N.A. |
| Listing Date | N.A. |
| Face Value | ₹10.00 per share |
| Price | N.A. |
| Lot Size | N.A. |
| Total Issue Size | Up to XXXX Equity Shares |
| Aggregating up to ₨ 30,000.00 million | |
| Fresh Issue | N.A. |
| N.A. | |
| Offer For Sale | Up to XXXX Equity Shares |
| Aggregating up to ₨ 30,000.00 million | |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE & NSE |
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not more than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
Techno Clean Air India IPO: Issue Price & Size
The issue price of TECHNO CLEAN AIR INDIA LIMITED hasn’t been released yet. Upon releasing the dates, the investors can bid between those price ranges. The company has offer for sale issue aggregating up to ₹ 30,000.00 million at the price of ₨XXXX.
Launch Date of Techno Clean Air India IPO
The IPO opening date of TECHNO CLEAN AIR INDIA LIMITED hasn’t been officially announced yet, upon the declaration of dates investor can bid for IPO.
Financial Statements of Techno Clean Air India Limited
| Particulars | 31 March 2025 |
31 March 2024 |
31 March 2023 |
| Income | |||
| 1. Revenue from operations | 48,904.30 | 54,676.12 | 48,273.68 |
| IL Other income | 410.15 | 697.76 | 595.88 |
| B. Total income | 49,314.45 | 55,373.88 | 48,869.56 |
| IV. Expenses | |||
| a ) Cost of materials consumed | 31,813.40 | 38,355.04 | 33,968.92 |
| b ) Change in inventories of finished goods , work – in-progress | 52.21 | 163.25 | ( 99.67 ) |
| c ) Purchase of stock in trade | 346.06 | 406.70 | 514.63 |
| d ) Employee benefits expense | 2,979.24 | 2,526.45 | 2,485.76 |
| e ) Finance cost | 202.66 | 251.63 | 215.58 |
| f ) Depreciation and amortisation expense | 1,031.72 | 1,035.93 | 1,009.19 |
| g ) Other expenses | 5,561.00 | 7,103.83 | 5,697.70 |
| Total expenses | 41,986.29 | 49,842.83 | 43,792.11 |
| V. Restated Profit before tax ( I – IV ) | 7,328.16 | 5,531.05 | 5,077.45 |
| VI. Tax expense | |||
| Current tax | 1,878.16 | 1,354.28 | 1.280.23 |
| Deferred tax | ( 91.28 ) | ( 25.67 ) | ( 19.98 ) |
| Short Provision of tax relating to earlier years | 9.85 | 34.57 | 6.77 |
| Total tax expense | 1,796.73 | 1,363.18 | 1,267.02 |
| VII. Restated Profit for the year ( V – VI ) | 5,531.43 | 4,167.87 | 3,810.43 |
Key financial ratios of Techno Clean Air India Limited
| Financial metrics | 2025 | 2024 | 2023 | |
| Revenue from Operations | * million | 48,904.30 | 54,676.12 | 48,273.68 |
| Revenue Growth | % | ( 10.56 % | 13.26 % | NA |
| EBITDA | million | 8,152.39 | 6,120.85 | 5,706.34 |
| EBITDA Growth | % | 33.19 % | 7.26 % | NA |
| EBITDA Margin | % | 18.61 % | 14.34 % | 14.62 % |
| Profit After Tax | million | 5,531.43 | 4.167.87 | 3,810.43 |
| PAT Growth | % | 32.72 % | 9.38 % | NA |
| PAT Margin | % | 11.31 % | 7.62 % | 7.89 % |
| Net Debt | million | ( 2,662.06 ) | ( 1,679.77 ) | ( 3,802.26 ) |
| Net Debt to Equity Ratio | Number of times | ( 0.17 ) | ( 0.17 ) | ( 0.31 ) |
| Net Debt to EBITDA Ratio | Number of times | ( 0.33 ) | ( 0.27 ) | ( 0.67 ) |
| Return on Equity ( ROE ) | % | 42.65 % | 38.05 % | 32.88 % |
| Return on Capital Employed ( ROCE ) | % | 56.78 % | 45.40 % | 33.51 % |
| Fixed Assets Turnover Ratio | Number of times | 8.37 | 9.07 | 7.76 |
| Net Working Capital | million | 1,778.29 | 806.30 | 2,915.34 |
| Cash Conversion Cycle | Days | ( 24 ) | ( 18 ) | ( 10 ) |
| Business Divisions – wise Revenue | ||||
| Clean Air and Powertrain Solutions Division | million | 28,122.69 | 36,031.07 | 30,403.47 |
| Advanced Ride Technologies Division | * million | 20,781.61 | 18,645.05 | 17,870.21 |
Promoters & Shareholding Techno Clean Air India IPO
As of date, according to the DRHP filed with SEBI promoters and promoter group have 100.00% shareholding in company.
| Name of the Shareholder | Number of Shareholders | Number of Equity Shares | Equity Share capital (% ) |
| Promoter & Promoter Group | 7 | 403,604,309 | 100.00 |
| Public | 0.0 | 0.0 | 0.0 |
| Total | 7 | 403,604,309 | 100.00 |
Should You Subscribe To Techno Clean Air India IPO
While investing or subscribing to any IPO, consider the investment rationales related to the company. Hence, here you can find out the strength of the company that will be its growth factors. And also check the risk factors that can affect the growth and operational efficiency of the company.
Competitive Strengths of Techno Clean Air India IPO
Market leading company
The company is market leader supplier of critical, highly engineered and technology intensive clean air, powertrain and suspension solutions to leading Indian and global OEMs, with leading market shares across several automotive industry sub-segment in terms of revenue by vehicle segment for FY24. In terms of Value Company is largest supplier of clean air solutions to Indian CT OEMs market and largest supplier of shock absorbers and struts to Indian PV OEMs market.
Diversified products portfolio
Techno Clean Air India Ltd. has large range of customized and proprietary products and solutions for each industry sub-segment including exhaust after treatment systems such as catalytic converters, mufflers and exhaust pipes, engine bearings, sealing systems, spark plugs, shock absorbers and struts and advanced suspension system. This structure reduces the impact of downturns in the automotive industry and promotes stability and resilience in financial condition.
Strong manufacturing and supply chain
The manufacturing facilities situated across seven states and one union territory in India, including seven clean air & powertrain solutions facilities and five advanced ride advanced ride technology facilities, as of March 31, 2025. The company facilities are strategically located in key automotive OEM hubs in India such as Maharashtra, NCR, Tamil Nadu and Gujarat. These geographic locations allow company to serve major automotive market across India.
Robust financial performance
In past three years, company experienced growth and better margins. The restated profit for year improved from Rs 3,810.43 million in fiscal 2023 to Rs 4,167.87 million in fiscal 2024 & Rs 5,531.43 million in fiscal 2025, showing 20.485 CAGR, proofing company focus on profitable growth and continual improvement. The EBITDA margin (%) was stable at 11.82% and increased in FY25 to 16.67%. The PAT margin (%) also increased from 7.89% in FY 2023 to 11.31% in FY 25, supported by growth, profitability and efficient use of capital.
Risk Factors of Techno Clean Air India IPO
Government regulations
The business of company is heavily influenced by government policies and regulations related to emission standards, it heavily impact industry in company operates. The government policies regarding emission standards directly affect the design, production, and sale of company clean air and powertrain products. Stricter emission standards require company to use advanced technologies, which add cost and complexity to manufacturing. If company is unable to keep pace with or develop products that meet the requirements of new emission standards, it could adversely affect operations, financial condition and cash flows.
High cost of raw materials
The operations and profitability are significantly dependent on the availability and cost of raw materials, including steel and components such as electrodes, bimetal strips and pressed parts. In fiscal 2025, 2024 and 2023, COGS accounted for 65.05%, 70.15% and 70.37% of company revenue from operations and any volatility in the prices may adversely impact its business, results of operations and financial conditions.
Customer pricing pressure
The pricing pressure from customers and inability of company to pass costs to customers, could negatively affect revenue from operations and profitability. In OEMs automotive components industry carry aggressive and systematic price reduction initiatives with their suppliers. Any pressure from customers to reduce prices may affect profit margin in future. As some external factors are beyond control of company, it is difficult to maintain profitability.
Large R&D requirement
The company invests in R&D to improve their existing products, processes and facilities and develop new products to meet customer demand and new emission standards. The development of technologically advanced products involves a lengthy and expensive process, including R&D investments. Any adverse change in company relationship, including the termination of license agreement, could have adverse impact on business.
Techno Clean Air India IPO Grey Market Premium
Grey market premium is the premium quoted over the IPO issue price. GMP shows that investors are ready to pay above the upper band of the IPO issue price. GMP is determined in the grey market as per the demand and supply of the shares in the primary market. A grey market is that unofficial ecosystem of unlisted companies’ stocks that start trading even before the launch of the IPO to the date of its listing.
Also Read: What is Grey Market Premium in IPO: How is GMP Calculated & Reliable
However, GMP is not a reliable factor, as it keeps fluctuating as per the demand and supply of shares in the primary market. There are numerous factors that affect the stock market in India and individual stock prices of different companies that are already listed and trading in the secondary market. However, for an IPO-bounded company, you can consider the GMP as the speculative listing price of the share
According to various online sources, the Grey Market Premium or GMP of the TECHNO CLEAN AIR INDIA LIMITED is trading around Rs XX in the grey market. It means shares are trading at the upper band issue price of Rs XX with a premium in the grey market and may list around the same price.
