Steamhouse India IPO has moved a step forward as Steamhouse India Limited filed its Updated Draft Red Herring Prospectus I (UDRHP I) with the Securities and Exchange Board of India (SEBI).
The filing follows the company’s earlier submission of the Confidential Draft Red Herring Prospectus on July 1, 2025, and subsequent receipt of SEBI’s observations on October 14, 2025.
Steamhouse India IPO: ₹425-Crore Issue with Fresh Shares and OFS
The Steamhouse India IPO proposes to raise ₹425 crore through equity shares of face value ₹2 each. The issue includes a fresh share sale worth ₹345 crore and an offer for sale (OFS) of ₹80 crore by promoter-selling shareholder Vishal Sanwarprasad Budhia.
The company may also undertake a pre-IPO placement of up to ₹15 crore before filing the Red Herring Prospectus. If executed, the fresh issue size will be reduced accordingly.
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Steamhouse India IPO: Utilisation of Proceeds
The company plans to deploy the net proceeds from the fresh issue towards:
- Repayment or prepayment of outstanding borrowings
- Capital expenditure for infrastructure and capacity expansion at its Ankleshwar Facility (Phase 3) and Panoli Facility (Phase 2)
- Setting up a new steam-generation facility in Dahej SEZ
- General corporate purposes
Community Boiler Pioneer Expands Industrial Gas Operations
Steamhouse India, led by promoter and CMD Vishal Budhia, introduced the community boiler system in India in 2014. Its industrial gas business includes steam generation and distribution, sourcing and distribution of purchased steam, and a pipeline-based nitrogen supply network.
The company operates seven community boilers across Gujarat – including Vapi Phase 1, Vapi WTE, Ankleshwar Phases 1 and 2, Sarigam, Nandesari, and Panoli – serving sectors like pharmaceuticals, chemicals, agrochemicals, textiles, tyres, polymers, and paints. The system enables reduced SPM, SOx, NOx, and ash emissions.
Steamhouse India IPO: Strong Capacity and Customer Network
As of November 15, 2025, Steamhouse India had an installed steam capacity of 345 TPH, equivalent to 2,185,920 tonnes annually. Additionally, it distributes purchased steam across Dahej GIDC and Sachin GIDC through a 56,236-meter pipeline infrastructure.
The company also expanded into nitrogen production on February 1, 2025, commissioning its first nitrogen project at Ankleshwar through a dedicated pipeline network.
Nitrogen revenue stood at ₹0.90 million in FY25 and ₹3.01 million during the period ending September 30, 2025. The company also engages in invoice-only coal trading.
Steamhouse India is the only company in India supplying nitrogen through a distributed pipeline network rather than cryogenic or onsite systems.
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Fuel Mix and Customer Base
Steamhouse India uses a combination of coal and non-fossil fuels – including plastic waste and textile chindi – for steam generation, and is evaluating alternative fuels like agro-waste and refuse-derived fuel.
Its key customers include Aether Industries, Anupam Rasayan India, Gujarat Polysol Chemicals, Devanshi Dyestuff, Orgo Chem Gujarat, Subhasri Pigments, and others. The company served 174 customers during the six months ended September 30, 2025.
Financial Performance Strengthens Ahead of Steamhouse India IPO
Revenue from operations rose from ₹2,917.10 million in FY24 to ₹3,951.06 million in FY25—a growth of 35.44%. Profit After Tax increased from ₹271.86 million to ₹311.61 million during the same period.
For H1 FY26 (ending September 30, 2025), the company reported revenue of ₹2,384.17 million and PAT of ₹130.85 million, with repeat customers contributing 96.64% of revenue.
Industry Outlook
According to F&S, India’s process steam demand in FY25 stood at approximately 186,000 TPH. The market is projected to grow at a 9.5% CAGR between FY25 and FY30.
While 42% of India’s industrial gas demand (excluding steam) is currently met through cylinders, pipeline-based supply is emerging as the preferred solution for large-scale industries.
Equirus Capital Private Limited is the sole Book Running Lead Manager to the Steamhouse India IPO.
