Gujarat-based industrial gas supplier Steamhouse India has officially fixed its price band at ₹77-81 per share for its ₹414-crore IPO, with public subscription opening on September 9. The company successfully raised ₹124.2 crore from anchor investors ahead of the public issue, allotting 1.53 crore shares at ₹81 per share - the upper end of the price band. The IPO will remain open for public subscription until September 11, with the lot size set at 185 equity shares and multiples thereof. At the upper price band of ₹81, one minimum lot would require an investment of ₹14,985, while bidding at the floor price of ₹77 would require ₹14,245 before applicable charges. The share allotment is expected to be finalised by September 15, with the company's shares scheduled to list on the stock exchanges on September 17. The issue is one among six IPOs opening on the same day, with 35% reserved for retail investors, 50% for eligible institutional investors, and 15% for non-institutional bidders.
According to latest reports from Business Standard, Steamhouse India IPO's Grey Market Premium (GMP) stands at ₹99 as of September 9, 2026, indicating strong investor interest. Based on this GMP, the estimated listing price suggests a potential 22.22% gain over the upper issue price of ₹81. Multiple brokerages have issued positive recommendations on the issue. SBI Securities has given a 'SUBSCRIBE' recommendation, citing the company's potential to benefit from recovery in chemical sector capacity utilization, as it received nearly 26% of its FY2026 revenue from that sector. The brokerage highlighted that Steamhouse recorded a revenue, EBITDA and profit after tax compound annual growth rate (CAGR) of 29.8%, 10.5% and 19.2% respectively between FY24 and FY26. Swastika Investmart has also recommended 'Subscribe' for long-term investors seeking exposure to a specialised infrastructure-like utility provider with strong entry barriers and capital deployment visibility. Ventura Securities has recommended 'Subscribe', noting that operating cash flow generation is strong at ₹100.46 crore as of March 31, 2026, positioning the company to fund its upcoming capacity expansion. Anand Rathi has also issued a 'Subscribe for Long Term' rating, emphasizing the company's well-positioned status to benefit from recovery in capacity utilisation across the chemical industry.
The anchor book saw strong participation from prominent institutional investors, with Madhusudan Kela-mentored Singularity AMC, through Singularity Large Value Fund III, and Kela-backed Chartered Finance & Leasing emerging as the largest buyers among anchor investors. Each picked up 51.97 lakh shares for ₹42.09 crore at the upper end of the price band. Other anchor investors included Sunil Singhania's Abakkus Asset Manager, through Abakkus Emerging Opportunities Fund-I, and alternative investment fund Emerge Capital, through Emerge Capital Opportunities Scheme, each acquiring 12.34 lakh shares for ₹10 crore. Arvind Kothari-owned Niveshaay Investment Advisors' Niveshaay Sambhav Fund bought 18.51 lakh shares for ₹15 crore, while 31 Degrees North Fund picked up 6.17 lakh shares for ₹5 crore. This institutional backing demonstrates confidence in the company's growth prospects and business model in the industrial gas distribution sector.
According to SBI Securities, the company's capacity expansions are expected to increase the company's annual steam distribution capacity from 21,85,920 TPA currently to 44,66,880 TPA. The ₹414 crore IPO comprises a fresh issue of ₹353 crore and an offer for sale (OFS) of ₹61 crore. The entire OFS portion will be offered by promoter Vishal Sanwarprasad Budhia, who will sell shares worth approximately ₹61 crore. Of the net proceeds from the fresh issue, ₹180 crore will be utilised to repay debt against total borrowings of ₹400.2 crore as of July 2026. A further ₹75.9 crore will be used to expand the capacity of its Ankleshwar and Panoli facilities, while ₹38.1 crore will be spent on setting up a new steam-generation facility at Dahej GIDC. The company's revenue in FY2026 stood at ₹494.97 crore, more than 50% higher than the ₹293.16 crore it reported during FY2024. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) stood at ₹83.49 crore from ₹69.32 crore last year. However, EBITDA margins have been on a downward trend, declining to 16.87% in FY2026 from 17.4% in FY2025 and 23.34% in FY2024. Profit After Tax (PAT) stood at ₹38.64 crore in FY2026, up from ₹31.16 crore in the previous year. At the upper end of the price band, the company will have a market capitalization of ₹2,238 crore.
Steamhouse India, established in 2014, specialises in the generation and centralised distribution of industrial gases, including steam and nitrogen, through its pipeline network. According to The Hindu BusinessLine, it is the only company in India that supplies nitrogen through a distributed pipeline network, instead of the more common practice of supplying it in cryogenic tanks or through onsite nitrogen generation. The company serves over 167 industrial clients across sectors including chemicals, textiles, pharmaceuticals, food processing, paper and manufacturing. As of July 31, 2026, the company had 229 employees and 276 contract workers. In fiscal 2026, revenue from repeat customers accounted for 90.72 percent of the company's revenue from operations, highlighting the stability of its existing customer relationships. The company has built over 45 kilometres of steam pipeline network across industrial clusters such as Sachin, Vapi, Ankleshwar, Sarigam, Panoli and Nandesari, and is expanding capacity across several locations, including Ahmedabad, Dahej, Jhagadia and Vapi. The company is also diversifying into waste-to-energy solutions, nitrogen compression and distribution and aviation logistics, having commissioned a waste-to-steam boiler at Gujarat's Vapi and secured a 5 MW waste-to-steam project from Ahmedabad Municipal Corporation (AMC) under the public-private partnership model.
Before filing its red herring prospectus, the company undertook a pre-IPO placement of equity shares worth nearly ₹50 crore in June from funds backed by investor Madhusudhan Kela and Niveshaay Sambhav Fund, as reported by The Hindu BusinessLine. The ₹414 crore IPO comprises a fresh issue of ₹353 crore and an offer for sale (OFS) of ₹61 crore. The entire OFS portion will be offered by promoter Vishal Sanwarprasad Budhia, who will sell shares worth approximately ₹61 crore. Equirus Capital has been appointed as the book-running lead manager for the Steamhouse India IPO, while Kfin Technologies acts as the registrar, with shares set to list on both BSE and NSE. SBI Securities has given a 'SUBSCRIBE' recommendation to the issue, citing the company's potential to benefit from recovery in chemical sector capacity utilization, as it received nearly 26% of its FY2026 revenue from that sector. The brokerage highlighted that Steamhouse recorded a revenue, EBITDA and profit after tax compound annual growth rate (CAGR) of 29.8%, 10.5% and 19.2% respectively between FY24 and FY26. However, according to SBI Securities, key risks include the company's significant dependence on coal availability, with coal purchases accounting for around 77% of Steamhouse's total purchases in FY26. Any disruption in coal availability or sharp increase in input costs could affect operations and profitability.
