Steamhouse India Files Updated DRHP With SEBI for Rs.425 Crore IPO

Surat | Gujarat — Pioneers of the Community Boiler system in India, the Surat-based Steamhouse India Limited has filed its Updated Draft Red Herring Prospectus 1 (UDRHP I) with the Securities and Exchange Board of India (SEBI). The company had filed Confidential Draft Red Herring Prospectus (CDRHP) with SEBI on July 01, 2025 and received observations on the same on October 14,2025.

The proposed initial public offering comprises equity shares of face value ₹2 each aggregating up to ₹425 crores, including a fresh issue of equity shares aggregating up to ₹345 crore and an offer for sale of equity shares aggregating up to ₹80 crore by Vishal Sanwarprasad Budhia (Promoter Selling Shareholder).

In consultation with the BRLMs, Steamhouse India Limited may consider a Pre-IPO aggregating up to Rs 15 crores between the date of filing of this Updated Draft Red Herring Prospectus – I and prior to filing of the Red Herring Prospectus. If undertaken the amount raised would be reduced from the fresh issue.

The company proposes to utilise the net proceeds from the fresh issue towards repayment or prepayment of all or a portion of certain outstanding borrowings availed by the company; funding capital expenditure requirements for augmenting infrastructure development of the company towards capacity expansion of the Ankleshwar Facility (Phase 3) and capacity expansion of the Panoli Facility (Phase 2); funding capital expenditure in relation to setting up of a new manufacturing facility for generation of steam in Dahej SEZ; and general corporate purposes.

Led by Vishal Budhia, its promoter and CMD, Steamhouse India introduced the concept of community boiler system in India in 2014 (Source: F&S Report). Their industrial gas business comprises steam generation and distribution, steam purchase and distribution, and the extraction, compression, and pipeline-based supply of nitrogen.

The company currently operates seven community steam boilers in Gujarat. Six owned and one leased across locations including Vapi Phase 1, Vapi WTE unit, Ankleshwar Phase 1, Ankleshwar Phase 2, Sarigam, Nandesari, and Panoli. It has an established industrial customer base across key sectors including, pharmaceuticals, chemicals, agro-chemicals, textiles, tyres, dyes and pigments, polymers, paints besides others and is strategically situated near major ports and customer clusters.

Its community boilers reduce SPM, SOx and NOx emissions and ash content.

As of November 15, 2025, the combined installed steam capacity across these boilers is 345 tonnes per hour, translating to an annual installed capacity of 2,185,920 tonnes per annum. Additionally, the company distributes purchased steam in Dahej GIDC and Sachin GIDC via 56,236 meters of owned, operated and maintained pipeline system.

The company is now expanding into the supply of other industrial gases. It commenced nitrogen production and supply on February 01, 2025, and commissioned its first nitrogen project, delivered through a dedicated pipeline network at its Ankleshwar facility. The company generated ₹0.90 million from its nitrogen operations in Fiscal 2025 and ₹3.01 million during the stub period ended September 30, 2025. Additionally, as  the company procures coal as the primary fuel for its industrial gas business, it also engages in coal trading on an invoice-only basis.

It remains the only company in India that supplies nitrogen through a distributed pipeline network, instead of the common practice of using cryogenic tanks or onsite nitrogen generation.

The company utilizes a diverse range of fuels for its operations including coal and non-fossil fuels like plastic waste and textile chindi to generate steam. They are now exploring increased use of alternative fuel sources such as agro-waste, and refuse-derived fuel as a source of fuel for generating steam.

Its marquee customers include Aether Industries Limited, Anupam Rasayan India Limited, Globe Enviro Care limited, Gujarat Polysol Chemicals Private Limited, Devanshi Dyestuff, K. Patel Chemo Pharma Private Limited, K. Patel Dye Chem Industries Private Limited, Mahavir Synthesis Private Limited, Mangalam Intermediaries, Orgo Chem Gujarat Private Limited and Subhasri Pigments.Overall it has served 174 customers during the six month period ended September 30, 2025.

The company’s revenue from operations increased from ₹2,917.10 million in FY24 to ₹3,951.06 million in FY25, reflecting a growth of 35.44%. During the same period, Profit After Tax (PAT) rose from ₹271.86 million to ₹311.61 million.

For the six-month period ended September 30, 2025, the company reported revenue from operations of ₹2,384.17 million and a Profit after Tax (PAT) of ₹130.85 million. Repeat customers accounted for 96.64% of its revenue from operations.

According to F&S, in Fiscal 2025, India’s total process steam demand was approximately 186,000 TPH. With a projected CAGR of 9.5% from Fiscal 2025 to 2030, the market is poised for significant expansion. Industrial gases are indispensable to large-scale industries such as pharmaceuticals, chemicals and textiles, where they play a critical role in optimizing production efficiency and ensuring operational stability.

While as of Fiscal 2025, cylinder-based supply accounts for 42.0% of India’s industrial gas (excluding steam) demand by value. As the Indian industrial sector continues to expand, the supply of industrial gases through pipelines is emerging as a preferred alternative.

Equirus Capital Private Limited is the sole Book Running Lead Manager (BRLM) to the issue.