Apollo Global Management has shortlisted 4 investment banks as advisors as the global private equity giant prepares to list the India arm of its portfolio firm, US-based auto component maker Tenneco Inc, multiple industry sources in the know told Moneycontrol.
"The IPO process for Tenneco's India operations has kicked off earlier and the issue may be launched in FY26. Citi, Axis Bank, HSBC Securities and JM Financial have been engaged for the deal," said one of the persons cited above.
In a kick-off meeting, the issuer firm discussed key plans and the roadmap for the IPO along with the roles and responsibilities for the advisors who are brought together.
A second person added, "The quantum hasn't been finalised, and plans may vary at a later stage depending on market conditions, but as of now the firm is looking to raise around $400 million at a targeted valuation of $2 billion to $2.5 billion."
A third person confirmed the above and added that the filing of draft papers was likely by May-June.
All the three persons cited above spoke to Moneycontrol on the condition of anonymity.
Bloomberg was the first to report the listing plans of Tenneco Automotive India Private Ltd, the domestic arm of the US firm on January 14.
When contacted, Apollo Global Management, Citi, Axis Capital and HSBC Securities declined to comment. Moneycontrol has sent email queries along with reminders to Tenneco Inc and is awaiting a response. A query to JM Financial remained unanswered at the time of publishing this article.
In February 2022, Tenneco announced that it had entered into a definitive agreement to be acquired by funds managed by affiliates of Apollo in an all-cash transaction with an enterprise valuation of approximately $7.1 billion, including debt. Post the completion of the buyout, the firm would become a private company, the announcement added.
Tenneco is one of the world's leading designers, manufacturers, and marketers of automotive products for original equipment and aftermarket customers. Through it's DRiV, performance solutions, clean air and powertrain groups, the firm delivers advanced technology solutions for light vehicle, commercial truck, off-highway, industrial, motorsport and the aftermarket.
Its customer base includes the likes of BMW, Ford, Nissan, Mercedes, Volvo, Toyota, Volkswagen , Great Wall Motors, SAIC Motors and others as per its website.
Recently, in an interaction with CNBC TV-18, Jim Voss, CEO, Tenneco said,"India is a key part of our past success, our current success and certainly our future. Tenneco has been doing business in India since the 60s, we have 19 manufacturing facilities, 6 after-market drive distribution centres, technology centres and over 12,000 employees. "
Voss added, "As the world looks at having a reliable supply chain, a lot of the products coming from China, now some of our OEM partners are re-thinking their strategy, as we are , as well. I think India is very well-positioned because of the cost-basis, world-class employees, world class technology."
On June 2024, Moneycontrol was the first to report the listing plans of the India unit of Italy's Carraro Group, an agricultural equipment maker and a leader in transmission systems for tractors and off-highway vehicles. The firm made its market debut later on December 30. German car-parts maker Mahle is also reportedly considering a listing of its Indian unit.
On October 21, Hyundai Motor India , the Indian arm of the South Korean auto major, made its market debut with a $3.3-billion issue, India's biggest ever IPO. Other examples of MNC IPOs in the works include LG Electronics and Orkla India (Norwegian parent that owns MTR & Eastern Condiments)
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