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The IPO of Tenneco Clean Air India Limited will be listed in the market on Wednesday. Its IPO got a good response and GMP is showing that the listing of shares is also going to be tremendous. Investors can get a profit of up to Rs 112 on every share.
New Delhi. The IPO of Tenneco Clean Air India Limited has created the most noise in the market this week. As soon as the public issue closed, the subscription figures came out and then the gray market premium further heated up the atmosphere. The crowd of investors was so high that this IPO was filled more than 60 times and the discussion on its shares became intense even before the listing. The expectation in the market is that investors can see huge earnings on the very first day of listing.
The company had kept the price band of Rs 378 to Rs 397 and based on the current gray market premium, it is estimated that this share may be listed above Rs 500. A premium of Rs 112 is visible in the gray market and on this basis there is enthusiasm among investors. But the real story will become clear on the listing day itself, because the subscription of IPO is showing different strengths in many categories.
Investors’ heavy emphasis on IPO
Tenneco Clean Air India’s IPO was subscribed a total of 60.79 times. The biggest role in this was played by Qualified Institutional Buyers i.e. QIBs who bid more than 174 times. The category of non-institutional investors also reached close to 43 times. Common investors also subscribed this IPO more than 5 times. These three categories together show that the company’s business model, demand in the auto sector and its growth outlook have won the trust of investors.
Big premium in gray market, will you really get benefit?
Before listing, the share is trading at a premium of Rs 112 in the gray market, which makes the potential listing price around Rs 509. Such a high premium means that investors are expecting a profit of more than 28 percent on the listing day. Although the gray market does not always tell the actual price, the kind of sentiment being created is likely to show a bullishness in the initial trade.
Company’s business and its place in the market
Tenneco Clean Air India was started in the year 2018 and is a subsidiary of Tenneco Inc. Tenneco Inc. manufactures engine and powertrain products globally and develops emission control technologies for light and commercial vehicles through its Clean Air division. With the increasing demand for electric and hybrid vehicles in India, the need for emission solutions is also increasing. In such a situation, the company’s business direction seems to be catching the right market at the right time.
The bullish atmosphere just before the listing shows that the IPO of Tenneco Clean Air India has created a strong confidence among the investors. Subscription, gray market premium and the business model of the company all indicate that this listing is going to be in the news. Now the focus is only on Wednesday when for the first time the market will reveal the real value of the company and the perception of investors. If the environment remains positive then this IPO can become a great start for those investors who have got allotment.
