Company Overview

Steamhouse India Limited operates centralized industrial gas generation facilities, primarily producing and distributing steam and nitrogen to industrial customers through a pipeline network. The company serves customers in proximity to its facilities in Gujarat, generating steam primarily using coal as fuel while exploring non-fossil alternatives. With seven community boilers totaling 345 TPH capacity and a 60 km pipeline network, it served 202 customers in FY26 across pharmaceuticals, chemicals, textiles, and other industrial sectors.

Offer Details

The ₹4.14 billion IPO comprises a fresh issue of 43.58 million shares (₹3.53B) and an offer for sale of 7.53 million shares (₹610M) by promoter Vishal Sanwarprasad Budhia. The price band is ₹77-81 per share, with the final offer price set at ₹81 (40.5x face value). The offer opens September 9-11, 2026, with listing expected around September 17, 2026. Equirus Capital Limited serves as sole book running lead manager.

Financial Performance

The company demonstrated strong growth with revenue increasing from ₹2,917.10 million in FY24 to ₹4,915.11 million in FY26 (24.4% YoY growth). Profit After Tax grew from ₹271.86 million to ₹386.39 million over the same period. Segment revenue breakdown shows steam generation contributing 69.84%, coal trading 26.92%, and new nitrogen operations 0.12% in FY26. The company maintained EBITDA margins of 16.99% and PAT margins of 7.81% in FY26, with Return on Net Worth at 23.60%.

Use of Proceeds

Net proceeds of approximately ₹3.17 billion will be allocated to:

  • Debt repayment: ₹1,800 million (reducing total borrowings of ₹2,816.22 million)
  • Capacity expansion: ₹379.77 million for Ankleshwar Phase 3, ₹379.76 million for Panoli Phase 2
  • New facility: ₹381.74 million for Dahej GIDC Phase 2
  • General corporate purposes: ₹231.25 million

Post-expansion, total steam distribution capacity will increase from 345 TPH to 705 TPH.

Risk Factors

Business Risks: Customer concentration (top 10 customers contributed 47.87% of FY26 revenue), dependence on coal suppliers (77.29% of purchases), geographical concentration in Gujarat, and fuel price volatility.

Regulatory Risks: Past environmental violations with Gujarat Pollution Control Board, outstanding legal proceedings including ₹35.77 million in stamp duty disputes, and need for various permits and approvals.

Market Risks: First public issue with no established market for shares, competition from established players like Linde India, and economic cycles affecting industrial demand.

Management & Ownership

Promoter Vishal Sanwarprasad Budhia (Chairman and MD) holds 86.97% pre-IPO, reducing to 77.29% post-IPO. The management team includes experienced professionals with industry expertise. The company has 235 employees and an ESOP scheme with 425,095 options outstanding.

Market Position & Growth

According to Frost & Sullivan, India's total process steam demand was approximately 203,472 TPH in FY26 with projected 9.4% CAGR through 2031. The company is a market leader in community boiler systems, first introduced in 2014. Expansion plans include new facilities using both coal and non-fossil fuels, positioning the company for continued growth in the industrial gases sector.

Legal & Compliance

The company has obtained necessary regulatory approvals including SEBI observations, BSE/NSE in-principle listing approvals, and RBI clearance. Ongoing legal matters include environmental compliance issues, tax disputes, and stamp duty assessments totaling approximately ₹62.92 million in aggregate exposure.