Steamhouse India, a pioneer of India’s community boiler system and a leading industrial gas generation and distribution company, has filed its Updated Draft Red Herring Prospectus-I (UDRHP-I) with the Securities and Exchange Board of India (SEBI). This marks the company’s transition from confidential filings to a full public disclosure, outlining detailed financials, expansion plans, and a sustainability-driven strategy ahead of its planned IPO.
Steamhouse India IPO: Structure & Details
Steamhouse India IPO comprises:
- Fresh issue: Up to INR 345 crore
- Offer for sale (OFS): Up to INR 80 crore by promoter Vishal Sanwarprasad Budhia
- Total offer size: Up to INR 425 crore
Equirus Capital is the Book Running Lead Manager, and Kfin Tech is the registrar of the issue.
Business Overview
Steamhouse India specialises in the generation and centralised distribution of industrial gases—primarily steam and nitrogen—through its proprietary pipeline networks. The company and its promoters are credited with introducing India’s first community boiler system in 2014, offering a shared, environmentally efficient alternative to multiple standalone industrial boilers.
The company operates seven community boiler facilities across Gujarat—including Vapi, Ankleshwar, Sarigam, Nandesari, and Panoli—with a combined installed capacity of 345 tonnes per hour (TPH), or 2.19 million tonnes per annum (TPA). Steamhouse also maintains an extensive pipeline network of over 56,000 meters, connecting its generation units to industrial customers across key manufacturing clusters.
In February 2025, Steamhouse became India’s first company to supply nitrogen via pipeline, commissioning its Ankleshwar nitrogen facility (350 NM³/hour capacity), thereby expanding its industrial gas portfolio.
Steamhouse India IPO: Financial Performance
Steamhouse India has demonstrated consistent revenue growth and profitability over the last three fiscal years, with a temporary moderation in margins due to expansion costs. The financial highlights are as follows:
| Fiscal Year | FY2023 | FY2024 | FY2025 | H1 FY2026 |
|---|---|---|---|---|
| Revenue from Operations | 315.54 | 291.71 | 395.11 | 238.42 |
| Profit After Tax (PAT) | 33.40 | 27.19 | 31.16 | 13.09 |
| EBITDA Margin (%) | 18.36 | 23.45 | 17.54 | 14.08 |
| PAT Margin (%) | 10.55 | 9.27 | 7.82 | 5.46 |
| Return on Equity (%) | 58.76 | 26.26 | 23.53 | 8.92* |
| Debt-to-Equity (x) | 1.82 | 1.77 | 1.63 | 1.42 |
Figures in INR Crore until specified
The company reported strong repeat business, with 96.6% of H1 FY2026 revenue derived from existing clients, underscoring customer loyalty and contract stability.
Promoter & Shareholding
Steamhouse India is promoted by Vishal Sanwarprasad Budhia, an industry veteran with over 29 years in textiles and 10 years in industrial gas systems. As of the Steamhouse India UDRHP filing, the shareholding pattern is as follows:
| Shareholder | Shares Held | % of Pre-Offer Capital |
|---|---|---|
| Vishal Sanwarprasad Budhia | 20,25,00,000 | 89.61 |
| VSB Business Trust | 80,10,425 | 3.54 |
| Budhia Business Trust | 63,87,000 | 2.83 |
| VB Business Trust | 42,63,000 | 1.89 |
| Total | 22,11,60,425 | 97.87 |
Steamhouse India IPO: Use of Funds
The net proceeds from the fresh issue will be deployed as follows:
| Purpose | Amount (INR Cr) |
|---|---|
| Repayment or prepayment of borrowings | 150.0.00 |
| Capacity expansion & infrastructure development (Ankleshwar, Panoli, Dahej SEZ) | 70.90 |
| New manufacturing facility at Dahej SEZ | 37.38 |
| General corporate purposes | Balance |
These investments aim to de-leverage the balance sheet, boost installed capacity to 675 TPH, and support entry into new industrial clusters.
Business Segments and Revenue Mix
Steamhouse’s business model integrates three major streams:
- Generation and distribution of steam – Core business contributing ~54% of H1 FY2026 revenue.
- Purchase and distribution of steam – 17% of H1 FY2026 revenue, from partner entities such as Sanjoo Dyeing & Printing Mills and Kilburn Chemicals.
- Coal trading and other activities – 28% of H1 FY2026 revenue.
- Nitrogen generation and supply – Recently added; 0.13% of H1 FY2026 revenue.
The company serves 174 industrial clients, including Aether Industries, Anupam Rasayan, and Gujarat Polysol Chemicals, across sectors such as chemicals, pharmaceuticals, textiles, and agrochemicals.
Strategic Direction
Steamhouse India’s growth roadmap focuses on five key priorities:
- Expanding capacity – New facilities at Nandesari (Phase 2), Jhagadia, Vapi (Phase 3), Dahej SEZ, Ankleshwar (Phase 3), Pirana (Ahmedabad), and Tarapur.
- Diversifying fuel mix – Incorporating non-fossil fuels such as plastic waste, textile chindi, and agro-residue to reduce carbon emissions.
- Strengthening the balance sheet – Reducing debt through IPO proceeds to lower interest burden and improve credit metrics.
- Leveraging technology – Utilizing SCADA, drone mapping, and IoT-based flow meters for real-time operational monitoring.
- Expanding product offerings – Scaling nitrogen distribution and exploring hydrogen, carbon dioxide, and instrument air supply networks.
Final Words
Steamhouse India IPO presents a unique play in India’s industrial decarbonization and efficiency segment. Its scalable infrastructure, high customer retention, and first-mover advantage in pipeline-based nitrogen supply create meaningful barriers to entry. While its margins have moderated amid rapid expansion, deleveraging and scale efficiencies post-IPO could support earnings normalisation. The company’s combination of steady recurring revenue, industrial customer stickiness, and environmental alignment may attract both institutional and ESG-focused investors.
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