Steamhouse India Limited IPO Date, Price, GMP, Review, Details

Business Overview

Steamhouse India Limited generates and centrally distributes industrial gases – principally steam, and more recently nitrogen – to industrial customers through its own pipeline network. The model is the community boiler: instead of each factory in an industrial cluster running its own boiler, one central plant generates steam and pipes it to many customers. The Company and its Promoters are pioneers of the community boiler system in India, first introduced in 2014, per the F&S Report. The business has three legs – generation and distribution of steam, purchase and distribution of steam bought from other generators, and separation, compression and distribution of nitrogen – and the Company, until April 2026, also engaged in coal trading on an invoice-only basis, selling in the open market the excess of the coal it buys in bulk as the primary fuel for its boilers.

All operations are in Gujarat. The Company runs seven community steam boilers – six owned and one leased – at Vapi Phase 1, the Vapi waste-to-energy unit, Ankleshwar Phase 1 and Phase 2, Sarigam, Nandesari and Panoli, with combined installed capacity of 345 tonnes per hour as of July 31, 2026, equivalent to 21,85,920.00 tonnes per annum. It additionally distributes purchased steam at Dahej GIDC Phase 1 and Sachin GIDC, and in April 2026 signed five-year steam purchase agreements for Dahej SEZ and for Haldia, with operations expected to commence in both within 12 months of the Red Herring Prospectus. Nitrogen production began on February 1, 2025 from a single facility at Ankleshwar with capacity of 350 NM3 per hour.

Revenue from operations of ₹491.51 Crore in Fiscal 2026 comprised generation and distribution of steam at ₹256.26 Crore or 52.14%, purchase and distribution of steam at ₹87.00 Crore or 17.70%, coal trading at ₹132.33 Crore or 26.92%, nitrogen at ₹0.58 Crore or 0.12% and other items at ₹15.36 Crore or 3.12%. The Company served 202 customers in Fiscal 2026 across pharmaceuticals, chemicals, textiles, agrochemicals, tyres, dyes and pigments and other sectors, of which 154 were repeat customers contributing 90.72% of revenue. As of July 31, 2026 it owned, operated and maintained an operational pipeline system of 60,151 metres. Profit after tax was ₹38.64 Crore in Fiscal 2026 on EBITDA of ₹83.49 Crore, a 16.99% margin.

Effective April 1, 2026, Sanjoo Dyeing began procuring coal directly from third-party suppliers and the Company discontinued coal trading; it has undertaken no coal sales in Fiscal 2027 to date, and states that while this will reduce revenue from operations, coal margins were substantially lower than steam margins and it does not expect a material adverse effect.

IPO Details

Objects of the Offer

The Company proposes to utilise the Net Proceeds of the Fresh Issue towards the following objects. The Company will not receive any proceeds from the Offer for Sale, which accrue to the Promoter Selling Shareholder after deducting his share of Offer related expenses and taxes.

Key Strengths and Opportunities

• Leading Position in a Centralised Model Addressing a Large and Growing Steam Market
  The Company specialises in the generation and centralised distribution of industrial gases through its pipeline network, offering industrial customers an alternative to each running its own infrastructure. Per the F&S Report, India’s total process steam demand was approximately 203,472 tonnes per hour in Fiscal 2026 and is projected to grow at a 9.4% CAGR from Fiscal 2026 to Fiscal 2031. Industrial gases are indispensable to large-scale pharmaceuticals, chemicals and textiles operations, and process industries are increasingly turning to centralised generation and distribution to avoid the burden of individual boiler maintenance.

• Pipeline Exclusivity and Technology Creating High Barriers to Entry
  The Company and its Promoters pioneered the community boiler system in India in 2014, per the F&S Report, and have established geographic presence within industrial clusters through an exclusive pipeline network. The limited space available in established clusters prevents competitors from laying additional distribution networks. The Company’s operating edge is distributing industrial gases with minimum pressure and temperature losses, using real-time flow-meter monitoring, drone-assisted mapping of installations, SCADA systems and steam traps with auto valves, and third-party technology providers to collect and visualise data from deployed sensors and electrical panels.

• Seven Boilers and a 60,151 Metre Pipeline Network Sited Next to Customer Clusters
  The Company operates seven community steam boilers in Gujarat – six owned and one leased – at Vapi Phase 1, the Vapi waste-to-energy unit, Ankleshwar Phase 1 and Phase 2, Sarigam, Nandesari and Panoli, with combined installed capacity of 345 tonnes per hour as of July 31, 2026, equal to 21,85,920.00 tonnes per annum. As of July 31, 2026 it owned, operated and maintained an operational pipeline system of 60,151 metres. It additionally distributes purchased steam at Dahej GIDC Phase 1 and Sachin GIDC.

• Broad Customer Base with Very High Repeat Revenue
  The Company served 202 customers in Fiscal 2026, 173 in Fiscal 2025 and 125 in Fiscal 2024, across pharmaceuticals, chemicals, agrochemicals, textiles, tyres, dyes and pigments, polymers, paints and other sectors. Repeat customers numbered 154, 120 and 74 over those years and contributed 90.72%, 88.01% and 91.49% of revenue from operations. Named customers include Aether Industries, Anupam Rasayan India, Globe Enviro Care, Gujarat Polysol Chemicals, Devanshi Dyestuff, K. Patel Chemo Pharma, K. Patel Dye Chem Industries, Mahavir Synthesis, Mangalam Intermediaries, Orgo Chem Gujarat and Subhasri Pigments.

• Eco-Friendly Positioning Through Centralisation, Emissions Reduction and Co-Generation
  The Company endeavours to meet customer industrial gas requirements by implementing eco-friendly solutions, reducing pollution from several industries and promoting sustainable development. Replacing captive boilers with community boilers contributes to sustainability by centralising boiler operations, and its community boilers reduce suspended particulate matter, sulphur oxide and nitrogen oxide emissions and ash content relative to dispersed individual units. It co-generates electricity at its Nandesari facility and has signed a wheeling agreement dated May 29, 2026 for a 3.04 MW ground-mounted solar project for the Ankleshwar plant.

Key Risks

• Related Party Transactions with Group Companies Equal Three-Quarters of Revenue
  Related party transactions with Group Companies were ₹362.46 Crore in Fiscal 2026, ₹278.18 Crore in Fiscal 2025 and ₹103.67 Crore in Fiscal 2024, representing 99.27%, 99.46% and 94.16% of total related party transactions and 73.74%, 70.41% and 35.54% of revenue from operations. Group Company Sanjoo Dyeing was among the top ten customers in Fiscals 2026 and 2025 and among the top ten suppliers in all three Fiscals.

• The Largest Customer is a Group Company and the Top Ten Supply Nearly Half of Revenue
  The top ten customers contributed 47.87% of revenue from operations in Fiscal 2026, 53.95% in Fiscal 2025 and 59.79% in Fiscal 2024, and the single largest customer contributed 18.36%, 16.60% and 10.77% over the same years. That largest customer in Fiscal 2026 was Sanjoo Dyeing & Printing Mills Private Limited at ₹90.24 Crore, which the Company discloses is a Group Company.

• Borrowings are Secured on the Generation Plants Themselves
  Total borrowings were ₹281.62 Crore as of March 31, 2026 against ₹222.95 Crore and ₹202.71 Crore in the two prior years, and the net debt to equity ratio was 1.57, 1.63 and 1.77 over those years. Of that, ₹253.38 Crore was secured, through hypothecation over the entire current assets and, for term loans, over fixed assets including the land and buildings on which the generation plants are located.

• ICRA Downgraded the Company’s Credit Ratings in October 2024
  By letter dated October 30, 2024 ICRA downgraded the Company’s long-term fund-based term loan rating to ICRA BBB (Stable) from BBB+ (Stable), while certain other facilities were also downgraded. Ratings have been stable since and there have been no further downgrades, but the Company states that any further downgrade could adversely affect its business.

• No Orders Have Been Placed for the Equipment and Machinery the Fresh Issue is Funding
  The Company proposes to apply ₹114.13 Crore of the Net Proceeds to purchasing equipment and machinery for the construction of new facilities, and states that as of the date of the Red Herring Prospectus no orders for that equipment and machinery have been placed. It has procured vendor quotations, but those are valid only for limited periods and may be revised.

Financial Snapshot

Peer Comparison

Valuation