Steamhouse India Ltd. has opened subscriptions for its ₹414 crore initial public offering, reflecting rapid financial improvement and sector potential, as investors assess its expansion prospects and sector exposure.
Steamhouse India Ltd. has opened subscriptions for its ₹414 crore initial public offering, becoming one of six new share sales to hit the market on Wednesday. The issue will run until Friday, September 11, and combines a fresh issue of shares with an offer for sale by its promoter.
The company has set a price band of ₹77 to ₹81 per share, with a lot size of 185 shares. That means a retail applicant must commit at least ₹14,985 for one lot. The offer is split with 35% reserved for retail investors, 50% for qualified institutional buyers and 15% for non-institutional investors. At the top end of the range, Steamhouse would be valued at about ₹2,238 crore.
According to the company’s prospectus and market coverage of the issue, Steamhouse operates in industrial utilities, generating and distributing steam and compressed nitrogen to factories in Gujarat’s chemical and manufacturing hubs, including Sachin, Vapi and Ankleshwar. Its system relies on a network of community boilers and pipelines, allowing industrial users to draw steam without installing their own boilers.
Financial performance has improved sharply in recent years. Revenue rose to ₹494.97 crore in fiscal 2026 from ₹293.16 crore in fiscal 2024, while earnings before interest, tax, depreciation and amortisation increased to ₹83.49 crore from ₹69.32 crore a year earlier. Even so, margins have eased, with EBITDA margin falling to 16.87% in fiscal 2026 from 23.34% in fiscal 2024. Profit after tax margin stood at 7.81%.
The business still carries concentration risks. The company said most of its revenue comes from Gujarat, coal made up 77.29% of total purchase costs in fiscal 2026, and its top 10 customers accounted for nearly 48% of operating revenue. The top 10 suppliers represented 81.71% of material purchases. Total debt stood at ₹281.62 crore, with a debt-to-equity ratio of 1.57 times.
SBI Securities has recommended subscribing to the issue, saying the planned use of ₹180 crore from the fresh issue to repay debt should materially strengthen the balance sheet. The brokerage also pointed to Steamhouse’s exposure to the chemical sector, which contributed nearly 26% of fiscal 2026 revenue, as a possible benefit if utilisation levels continue to recover. In the unlisted market, the shares were last reported to carry a grey market premium of ₹15, though that figure is speculative and may not match the eventual listing price.
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