Apollo Global Weighs Tenneco India IPO at $2 Billion Valuation

Apollo Global Management Inc. is considering listing the India business of auto-parts supplier Tenneco Inc., with a potential valuation of about $2 billion, according to people familiar with the matter. The US alternative asset manager is in talks with prospective arrangers about an initial public offering (IPO) that could take place in Mumbai this year, raising between $400 million and $500 million.

Tenneco Automotive India Pvt. Ltd., the Indian subsidiary of Tenneco Inc., is a leading supplier of emission control and ride control products and systems for the automotive original equipment market and the aftermarket. The company has a significant presence in India, with operations in eight states and a diverse portfolio of projects, including 400 MW of solar installations and multiple large-scale Engineering, Procurement, and Construction (EPC) ventures. Its customer base includes prominent players like Tata Motors, Mahindra, Maruti Suzuki, Renault-Nissan, Ford, Volkswagen, TVS Motor Company, Toyota Kirloskar Motor, and General Motors.

Apollo Global Management's interest in listing Tenneco India's business comes as other companies have done or plan initial public offerings of their units in the world's most populous country. The IPO market in India has been robust, with several successful listings in recent years. The proposed IPO of Tenneco India is expected to attract investors, given the company's strong financial performance and growth prospects.



Tenneco India's growth prospects are supported by the growing demand for emission control and ride control products, driven by stricter emission norms and increasing demand for better vehicle performance. The company's strong product portfolio, established customer base, and expansion plans position it well to capitalize on these trends. Additionally, Tenneco India's plans to expand its footprint in wind, hybrid, green hydrogen, and battery storage solutions, along with its strategic partnerships with technology providers and exploration of solar module production, contribute to its growth potential.

In conclusion, Apollo Global Management's consideration of an IPO for Tenneco India's business at a $2 billion valuation reflects the company's strong market position, growth prospects, and potential for value creation. Investors should closely monitor the developments surrounding this potential IPO, as it could present an attractive opportunity to invest in the growing Indian auto-parts supplier market.