Steamhouse India Ltd. IPO

Steamhouse India

• Steamhouse India is coming out with a 100% book building; initial public offering (IPO) of 5,37,66,232 shares of face value Rs 2 each in a price band Rs 77-81 per equity share.
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on September 09, 2026 and will close on September 11, 2026.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 2 and is priced 38.50 times of its face value on the lower side and 40.50 times on the higher side.
• Book running lead manager to the issue is Equirus Capital.
• Compliance officer for the issue is Shyam Bhadresh Kapadia. 

Profile of the company

Steamhouse India is an Indian company specializing in the generation and centralized distribution of industrial gases, including steam and nitrogen, through its pipeline network. The company and its Promoters are pioneers of the community boiler system in India, which was first introduced in 2014. Its community industrial gas generation and distribution systems provide gas to various industrial customers from a pipeline network, which provides an alternative to each individual customer having its own infrastructure.

Having established its steam generation business in India, the company is now embarking on an expansion plan of supplying other industrial gases. The company commenced nitrogen production and supply on February 1, 2025. It commissioned its first project for nitrogen supply through a pipeline network at its Ankleshwar facility, and, in Fiscal 2026 and Fiscal 2025, it generated Rs 5.77 million and Rs 0.90 million revenue from its nitrogen operations, respectively. It is the only company in India that supplies nitrogen using a distributed pipeline network instead of the common practice of supplying in cryogenic tanks and onsite nitrogen generation.

The company currently operates seven community steam boilers (six owned and one leased) in Gujarat through which it generates and distributes steam including Vapi Phase 1, Vapi WTE unit, Ankleshwar Phase 1, Ankleshwar Phase 2, Sarigam, Nandesari and Panoli. The company’s facilities are strategically located near Indian ports and near customer clusters in Gujarat. As of July 31, 2026, its combined installed plant capacity for steam across its seven boilers is an aggregate of 345 tonnes per hour (TPH), which translates to an annual installed capacity of 2,185,920.00 tonnes per annum (TPA).1 In addition, it distributes steam that it purchases in Dahej GIDC (Phase 1) and Sachin GIDC.

Proceed is being used for: 

• Repayment or prepayment of all or a portion of certain outstanding borrowings availed by the company
• Funding capital expenditure requirements for augmenting infrastructure development of the company towards (i) capacity expansion of the Ankleshwar Facility (Phase 3) and (ii) capacity expansion of the Panoli Facility (Phase 2)
• Funding capital expenditure in relation to setting up of a new manufacturing facility for generation of steam in Dahej GIDC (Phase 2)
• General corporate purposes

Industry overview

Industrial gases consist of individual gases or gas mixtures utilized across diverse industries for various manufacturing processes and operations. They play an essential role throughout the industrial value chain, from the procuring of raw materials to intermediate processing in industries such as metals, chemicals, pharmaceuticals, and ceramics, ultimately contributing to the production of industrial, consumer, and food products. Industrial gases are indispensable to large-scale industries such as pharmaceuticals, chemicals and textiles, where they play a critical role in optimizing production efficiency and ensuring operational stability. With the continuous expansion of industries reliant on these gases and the broad spectrum of applications within the sector, the industrial gases market is expected to maintain its strong growth momentum well into the future. This growth has been driven by rapid industrialization, infrastructure development, and advancements in gas production, storage, and distribution that improve efficiency and reduce costs.

Traditionally, industries have relied on on-site steam generation for captive use, with steam being a critical requirement across industrial sectors such as pharmaceuticals, textiles, food processing, paper and pulp, rice mills, distilleries, dairy, urea production, wood processing, chemicals, and tyre manufacturing. However, the emergence of community boilers and steam-as-a-service models, provided by companies like Steamhouse India, is transforming the landscape of industrial steam supply by bringing Steam-as-Service. In FY2026, India's total process steam demand was approximately 203,472 TPH. With a projected CAGR of 9.4% from FY2026 to FY2031, the market is poised for significant expansion. Assuming an annual operation of 8,000 hours, the total process steam demand is estimated at 1,628 million tons in FY2026. The average cost of steam varies by multiple factors such as the end-use industry (power plants, pharmaceuticals, food processing, etc.), boiler type, fuel type, water quality, feedwater treatment requirements, condensate recovery efficiency, and operational maintenance costs.

Meanwhile, Steam is an inevitable requirement for most of the process industries like textiles, pharmaceuticals, chemicals, food processing, fertilizer, plywood, paper, etc. to meet their heat requirements. Traditionally, industries set up boilers at their own premises to meet the steam requirements. These boilers are small to medium in size, have low efficiency, and at times safety is compromised, which results in casualties. The chimneys in industrial areas add PM-2.5 and PM-10 particles to the environment, causing diseases because of improper air pollution control equipment and non-professional management. Steam As A Service (SAAS) through community boilers refers to a model where a company operates a centralized boiler and distributes the produced steam to various industries for their production processes. The steam is distributed through a network of pipes to the industries that rely on it for various applications, such as heating, power generation, sterilization, or industrial processes. These service providers ensure the reliable generation of steam in required quantity and quality to meet the specific needs of the end user of steam. Replacing captive boilers with the use of community boilers, there can be potential savings of up to 25-30% of the fossil fuels that would have been used locally by individual boilers.

Pros and strengths 

Emerging leader in industrial gas solutions: It is an Indian company specializing in the generation and centralized distribution of industrial gases, including steam and nitrogen, through its pipeline network. Its community industrial gas generation and distribution systems provide gas to various industrial customers from a central plant, which provides an alternative to each individual customer having its own infrastructure. In Fiscal 2026, India's total process steam demand was around 203,472 TPH. With a projected CAGR of 9.4% from Fiscal 2026 to 2031, the market is poised for significant expansion. Recognizing the challenges posed by managing individual generation assets, process industries are increasingly turning to centralized generation and distribution services. In this landscape of industrial gases in India, it has emerged as a key player as a community industrial gas provider, poised to address the evolving needs of modern industrial processes.

Strong entry barriers and competitive advantage: The company and its Promoters are pioneers of the community boiler system in India, which was first introduced in 2014. It has established its geographic presence within industrial clusters through the creation of an exclusive pipeline network. The limited space available prevents the setup of additional distribution networks by other companies. Any new market entrants may need to overcome several entry barriers. One of its strengths is its experience in the distribution of industrial gases with minimum pressure and temperature losses, with real-time monitoring using flow meters and mapping its installations with the assistance of drones.

Strategic locations and growing steam capacity: The company currently operates seven community steam boilers (six owned and one leased) in Gujarat through which it generates and distributes steam including Vapi Phase 1, Vapi WTE unit, Ankleshwar Phase 1, Ankleshwar Phase 2, Sarigam, Nandesari and Panoli. The company’s facilities are strategically located near Indian ports and near customer clusters in Gujarat. As July 31, 2026, its combined installed plant capacity for steam across its seven boilers is an aggregate of 345 TPH, which translates to an annual installed capacity of 2,185,920.00 TPA.1 In addition, it distributes steam that it purchases in Dahej GIDC (Phase 1) and Sachin GIDC. In April 2026, it entered a steam purchase agreement with a chemical company to purchase and distribute steam for a term of 5 years in the Dahej SEZ as well as a steam purchase agreement with a chemical company to purchase and distribute steam for a term of 5 years in Haldia.

Eco-friendly community boiler operations: The company endeavours to meet the industrial gas requirements of its customers by implementing eco-friendly solutions, reducing pollution from several industries and promoting sustainable development. Replacing captive boilers with the use of community boilers contributes to sustainability by centralizing boiler operations, leading to lower emissions and improved fuel utilization. Depending on the geographical area and availability of non-fossil fuel in a particular sector, it reduces its emission by the use of scientific and automatic handling of coal and the coal ash-controlled movement and storage of coal. Its community boilers reduce SPM, SOx and NOx emissions and ash content. Where coal is the fuel source, it sprinkles hydrated lime on coal to reduce SOx emissions. It also burn the fuel when the fuel is crushed to the required size in fluidized conditions to achieve maximum combustion.

Risks and concerns

High customer concentration risk: The company’s top ten customers contributed 47.87% of its revenue from operations in Fiscal 2026. It also derives a significant portion (90.72% in Fiscal 2026) of its revenue from operations from repeat orders. Loss of any of these customers or a reduction in purchases or repeat orders by any of them could adversely affect its business, results of operations, cash flows and financial condition.

Exposure to coal price and supply risks: The company’s business and profitability are substantially dependent on the availability of coal for its steam production with purchases of coal contributing 77.29%, 76.19% and 92.01% of its total purchases for Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. The primary raw material which it utilizes at its facilities is coal. Coal is a commodity and coal prices fluctuate based on a number of factors, such as, its availability and transportation cost, fluctuations in domestic and international demand and supply of coal, international production and capacity, fluctuation in the volume of coal imports, protective trade measures and various social and political factors, in the economies in which the coal producers sell their products and are sensitive to the trends of particular industries, such as, the steel and power industries. Any restriction on the purchase of coal on Indian importers or the company from Indonesia or other sources outside India, including as a result of any trade restrictions, sanctions or higher tariffs placed by India on purchases made from other countries or similar restrictions are placed by the exporting country for supply of products to India, may impact its sourcing decisions and may lead to increased costs of purchase and shortages of coal.

Key supplier dependency and supply risk: The company relies on its top ten suppliers for its material requirements which constituted 81.71%, 75.35% and 76.53%, of its overall purchases in Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. Any increase in the prices, availability and quality of materials or loss of these suppliers could adversely affect its reputation, business, results from operations, financial conditions and cash flows.

Geographic constraints on expansion: The company’s operations are limited to providing steam and other industrial gases to customers in close proximity to its facilities. Further, its business and growth plans are dependent on its ability to find suitable land for the development of its steam and other industrial gas facilities which are in close proximity to the industrial clusters where its potential customers are located.

Outlook

SteamHouse India is an industrial gas company specialising in the generation and centralised distribution of steam and nitrogen through its pipeline network. Its community-based systems provide industrial customers with an alternative to developing and maintaining individual infrastructure. The company has an extensive pipeline network, spans over 45 kms in key industrial hubs including like Sachin, Vapi, Ankleshwar, Sarigram, Panoli and Nadesari. On the concern side, the company has a high dependence on a limited number of customers and suppliers. Its business relies significantly on key customers for revenue and key suppliers for materials. Any loss of major customers or suppliers, or a reduction in orders, could affect business performance. Higher material prices, supply shortages or quality issues could also impact profitability and cash flows.

The issue has been offering 5,37,66,232 shares in a price band of Rs 77-81 per equity share. The aggregate size of the offer is around Rs 414.00 crore to Rs 435.51 crore based on lower and upper price band respectively. Minimum application is to be made for 185 shares and in multiples thereof thereafter. On performance front, the company’s total income increased by 24.20% to Rs 4,949.74 million for Fiscal 2026 from Rs 3,985.29 million for Fiscal 2025. Moreover, the company’s profit after tax for the year increased by 24.00% to Rs 386.39 million for Fiscal 2026 from Rs 311.61 million for Fiscal 2025.

Meanwhile, the company’s management team is constantly exploring and planning for new projects in current and new locations throughout India. In executing this strategy, it monitors any initiatives for new industrial clusters or emerging markets, and it expects to participate in tenders for community industrial gas generation and distribution systems in upcoming industrial parks across India. The expansion of its operations will enable it to service a broader customer base and reduce its dependency on specific regions. This expansion strategy will facilitate better market penetration, risk distribution and enhanced business resilience.

According to the data released by the NSE, the Foreign Institutional Investors (FIIs) were net buyers of Rs 3274.77 crore in index futures and options segments, as per Thursday’s data, September 10, 2026.

FIIs were net sellers of index futures to the tune of Rs 857.42 crore and net buyers of index options worth Rs 4132.19 crore. In the stock segment, FII’s were net sellers of stock futures worth Rs 1629.44 crore and they bought stock options worth Rs 4.54 crore.

Futures & Options (F&O) total turnover stood at 86,22,467.81 crore on September 10 and the total number of contracts traded on the day were 5,90,21,014.

Of the total turnover, Index Futures contributed Rs 7,726.57 crore, Stock Futures Rs 42,446.73 crore and Index Options Rs 82,14,238.26 crore, while the contribution of the Stock Options was of Rs 3,58,056.25 crore.

For the day, the total F&O Put Call ratio stood at 0.86, while the Index Options Put Call ratio was 0.90 and that of Stock Options was 0.51.