Steamhouse India IPO: How it differs from peers; Check recommendations, lot size, GMP and more

Steamhouse India Ltd.'s ₹414 crore Initial Public Offer opens for subscription on Wednesday, September 9, and is one among the six IPOs that will open for subscription on the same day.

The issue will remain open for subscription until Friday, September 11, and is a combination of a fresh issue of equity and an Offer For Sale (OFS) from its promoter.

Steamhouse India IPO Details

The IPO comprises of a fresh issue of ₹353 crore and an Offer For Sale (OFS) of ₹61 crore.

Steamhouse India will be selling its shares in a price band between ₹77 to ₹81 per share. Each share carries a face value of ₹2 each.

One lot will comprise of 185 shares and retail investors will have to make a minimum investment of ₹14,985 for one lot of 185 shares and then bid in multiples of 185 shares thereafter.

35% of the IPO has been reserved for retail investors, 50% for the eligible institutional investors, while the remaining 15% for the non-institutional bidders (NIIs).

At the upper end of the price band, the company will have a market capitalization of ₹2,238 crore.

Equirus Capital is the book running lead manager of the issue.

What Does Steamhouse India Do?

The company is an industrial utility and gas company that specializes in the generation and centralized distribution of steam and compressed Nitrogen. It operates community boilers, which are connected to a dedicated pipeline network ranging from 45 to 56 kilometers across key industrial clusters of Gujarat, including Sachin, Vapi, Ankleshwar and others.

As a result of the company's community boilers, the companies or industrial units can source steam on demand without installing or maintaining boilers of their own.

The separation, compression and distribution of Nitrogen gas is done via the pipeline. Third-party producers purchase steam from the company for onward distribution.

How Has Steamhouse India's Financials Fared In The Last Three Years?

Steamhouse India's revenue in financial year 2026 stood at ₹494.97 crore, more than 50% higher than the ₹293.16 crore it reported during financial year 2024.

Its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) stood at ₹83.49 crore from ₹69.32 crore last year.

EBITDA margins though, have been on a downward trend, declining to 16.87% in financial year 2026, from 17.4% in financial year 2025, and 23.34% in financial year 2024. PAT Margin stood at 7.81%, nearly the same as last year.

Does Steamhouse Have Any Direct Peers?

While there are no directly listed peers that have a similar line of functioning like Steamhouse, it can be evaluated along with other industrial gas and utility infrastructure providers like Linde India, and the recently listed Ellenbarrie Industrial Gases Ltd.

Steamhouse focuses on localized steam grid infrastructure tied directly to chemical industrial zones, Linde and Ellenbarrie focus mainly on atmospheric industrial gases like Oxygen, argon and bulk gas cylinders.

The company also has a greater Return on Equity (RoE) of 22.36% in financial year 2026, well above Linde India's 13.8%, and trades at a valuation of 57.86x post-IPO price-to-earnings, well below Linde India's multiples, which range from 98x to 140x due to its national gas footprint.

What Are The Risk Factors Highlighted By Steamhouse In Its RHP?

• Operations and revenue mostly come from the state of Gujarat.


• Steam generation relies heavily on Coal, which accounted for 77.29% of total purchase cost in financial year 2026. Sharp fluctuations in Coal prices domestically and internationally will impact the company's financials.


• Top 10 customers contribute to nearly 48% of its financial year 2026 operational revenue.


• Top 10 suppliers contribute to 81.71% of total material purchases in the financial year gone by.


• Total debt stands at ₹281.62 crore with debt-to-equity at 1.57x. The business will need continuous capital expenditure for pipeline extensions and boiler setups.

Should You Subscribe To The Steamhouse India IPO?

The company intends to use ₹180 crore from the fresh issue proceeds to pay down debt, which, according to SBI Securities, will significantly de-lever its balance sheet and lead to its debt-to-equity ratio dropping to 0.2x from current levels.

SBI Securities also believes that the company stands to be a key beneficiary of the recent recovery seen in capacity utilization levels across the chemical companies as it received nearly 26% of its financial year 2026 revenue from that sector.

As a result, the brokerage has given a "SUBSCRIBE" recommendation to the issue.

What Are The GMP Trends Indicating For Steamhouse?

Based on reports from the unlisted market, shares of Steamhouse India currently carry a Grey Market Premium (GMP) of ₹15 per share. It must be noted that the GMP rates are speculative in nature, and that the actual listing price can differ from the GMP rates.