Industrial steam utility provider Steamhouse India Ltd has successfully raised nearly ₹50 crore through a pre-IPO placement from funds backed by investor Madhusudan Kela and Niveshaay Sambhav Fund. According to the company's public announcement on Thursday, the placement involved 68,49,315 equity shares at an issue price of ₹73 apiece, raising an aggregate ₹49.99 crore through a private placement. As per The Economic Times, this strategic investment positions these entities to hold nearly 3% of the company's pre-offer equity share capital.
Under the transaction structure, Singularity Large Value Fund III invested ₹34.99 crore for 47.94 lakh equity shares, while Singularity Equity Fund I subscribed to 6.85 lakh equity shares worth ₹5 crore. Niveshaay Sambhav Fund invested ₹9.99 crore and received 13.7 lakh equity shares. Following the allotment, these three investors together hold around 2.94 per cent of Steamhouse India's pre-offer equity share capital, as confirmed by The Economic Times.
In accordance with SEBI norms, the proposed fresh issue size under the IPO will be reduced by the amount raised through the pre-IPO placement. The Surat-based company filed its updated draft red herring prospectus (DRHP) in December for its proposed public issue. As per the updated draft papers, the IPO will be a combination of a fresh issue of shares worth ₹345 crore, along with an offer for sale (OFS) of shares valued ₹80 crore by promoter Vishal Sanwarprasad Budhia. Equirus Capital serves as the sole book-running lead manager to the issue.
Established in 2014, Steamhouse India operates a unique centralized steam supply model using community boilers as an alternative to captive boilers used by individual factories. The company uses IoT and AI-enabled systems across procurement, generation and distribution processes to supply industrial steam at approximately 190 degrees Celsius. The company serves over 167 industrial clients across sectors, including chemicals, textiles, pharmaceuticals, food processing, paper and manufacturing. 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.
As part of its waste-to-energy initiatives, Steamhouse India has commissioned a waste-to-steam boiler at Vapi that converts non-recyclable plastic waste generated by paper mills into industrial steam. The company has also secured a 5 MW Waste-to-Steam project from Ahmedabad Municipal Corporation under the public-private partnership (PPP) model. Beyond steam distribution, Steamhouse India is expanding into adjacent businesses such as nitrogen compression and distribution, waste-to-energy solutions and aviation logistics. The company is also evaluating opportunities in Andhra Pradesh, Telangana, Maharashtra, Himachal Pradesh, Madhya Pradesh, Rajasthan, Uttar Pradesh and Haryana for future expansion.
