IPO closes on 11 Sep'26
Steamhouse India Limited
Minimum Investment
₹ 14,985 / 185 shares
Our Verdict:
Neutral
- Steamhouse India is a pioneer of the community industrial gas (steam and nitrogen) generation and distribution model in India, operating seven community steam boilers across Gujarat since introducing the concept in 2014; revenue from operations grew from ₹291.71 crore (FY24) to ₹491.51 crore (FY26), and PAT grew from ₹27.19 crore to ₹38.64 crore over the same period.
- Margins and returns have moved in the opposite direction from revenue: EBITDA margin fell from 23.45% (FY24) to 16.99% (FY26), and Return on Equity declined from 26.26% to 22.36% over the same period — growth has come with some erosion in profitability per rupee of revenue and equity.
- Concentration is genuinely mixed: customer concentration has improved (top 10 customers fell from 59.79% of revenue in FY24 to 47.87% in FY26), but the business remains heavily dependent on coal (77.29% of FY26 purchases) and on related-party transactions with Group Companies (99.27% of FY26 related-party transaction value).
- The Company's own risk factors disclose it has previously operated a boiler before receiving final Gujarat Pollution Control Board approval, and separately faces execution and royalty-related risk on its newer Pirana facility awarded by the Ahmedabad Municipal Corporation.
- Genuine first-mover positioning in a niche, structurally growing category (community gas distribution, plus an emerging pipeline-nitrogen business) and consistent revenue growth support the fundamentals, but declining margins and return ratios, coal and related-party dependency, and a disclosed history of a regulatory compliance lapse are all real considerations to weigh before assuming the growth trend continues without cost.
About the company
Founded in
1 Jan'15
Managing director
Vishal Sanwarprasad Budhia
- Steamhouse India specialises in the generation and centralised distribution of industrial gases, including steam and nitrogen, through a pipeline network; the Company and its Promoters pioneered the community boiler system in India, first introduced in 2014.
- The Company operates seven community steam boilers (six owned, one leased) across Gujarat, at Vapi Phase 1, Vapi WTE Unit, Ankleshwar Phase 1 and Phase 2, Sarigam, Nandesari and Panoli, and commenced nitrogen production and pipeline supply in February 2025 at its Ankleshwar facility.
- The Company is the only supplier in India distributing nitrogen through a pipeline network rather than cryogenic tanks or onsite generation; it serves an established industrial customer base in Gujarat across pharmaceuticals, chemicals, textiles, agro-chemicals, tyres, dyes and pigments, polymers and paints.
- Promoters: Vishal Sanwarprasad Budhia (Chairman & Managing Director), Ritu Budhia, VSB Business Trust, Budhia Business Trust and VB Business Trust.
STRENGTHS
- Pioneer of the Community Boiler Model in India: The Company and its Promoters introduced the community industrial gas generation and distribution model in India in 2014, operating seven community steam boilers across Gujarat.
- Revenue and Profit Growth: Revenue from operations grew from ₹291.71 crore (FY24) to ₹491.51 crore (FY26); PAT grew from ₹27.19 crore to ₹38.64 crore over the same period.
- High Repeat Business: 90.72% of FY26 revenue came from repeat orders, reflecting established, long-term customer relationships.
- First Mover in Pipeline-Distributed Nitrogen: The only company in India supplying nitrogen through a distributed pipeline network rather than cryogenic tanks or onsite generation, having commenced nitrogen production in February 2025.
- Improving Customer Diversification: Revenue concentration among the top 10 customers fell from 59.79% (FY24) to 47.87% (FY26).
RISK FACTORS
- Coal Dependency for Steam Production: Coal purchases made up 77.29% of total purchases in FY26; profitability is substantially dependent on coal availability and pricing.
- Related Party Transactions with Group Companies: Transactions with Group Companies constituted 99.27% of the Company's total related-party transaction value in FY26, and such transactions may continue in the future.
- Past Regulatory Non-Compliance: The Company has previously operated a boiler before receiving final approval from the Gujarat Pollution Control Board, and may face penalties or revoked approvals for similar non-compliance in the future.
- Declining Margins and Returns Despite Revenue Growth: EBITDA margin fell from 23.45% (FY24) to 16.99% (FY26), and Return on Equity declined from 26.26% to 22.36% over the same period, even as revenue grew.
- Pirana Facility Execution Risk: The Company's Pirana facility (awarded via Ahmedabad Municipal Corporation tender) is subject to royalty payments and has faced construction delays that could attract contractual penalties, with returns dependent on recovering the investment within the 10-year work order term.
Financials
All Values are in Cr.
Issue details
Issue type
Mainboard
Issue size
₹ ₹414 crore
Fresh Issue
₹ ₹353 crore
OFS
₹ ₹61 crore
Price range
₹ 77 - 81
Lot size
185 shares
Issue Objective
- Net Proceeds from the Fresh Issue (₹353 crore) are proposed to be used for: (i) repayment/prepayment of certain outstanding borrowings (~₹180 crore); (ii) capital expenditure for capacity expansion at the Ankleshwar and Panoli facilities (~₹75.95 crore); (iii) capital expenditure for a new steam manufacturing facility at Dahej GIDC (~₹38.17 crore); and (iv) general corporate purposes (balance amount, capped at 25% of Gross Proceeds).
Dates
Bidding open
9 Sep'26
Bidding close
11 Sep'26
Allotment date
15 Sep'26
Refund date
16 Sep'26
Listing
17 Sep'26
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document (PDF)
© 2026 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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