Steamhouse India IPO GMP on Day 3 indicates a healthy listing; Here's all you need to know

The Steamhouse India initial public offering (IPO) will see its final day of bidding on Friday, September 11.

Grey Market Premium

Shares of Steamhouse India are trading at a grey market premium (GMP) of ₹23, in comparison to the IPO price band of ₹77 to ₹81, in the unlisted markets. This indicates an upside of up to 28.4% on listing day from its issue price.

However, it is important to note that the GMP is speculative data and the final listing price can differ from the same.

Day 2 Subscription

The ₹414 crore IPO, which opened for subscription on Wednesday, was fully subscribed on Day 2.

Investors bid 2.21 times or for 8.3 crore shares of the 3.76 shares on offer, led by retail investors.

Retail investors, or those who bid up to 2 lakh, saw their portion being subscribed 2.63 times the total shares on offer for them. They placed bid for a total 4.94 crore shares on Day 2 while 1.88 crore shares were reserved for them.

The overall Non-Institutional Investor basket saw overall bids of 2x, placing bids for 1.61 crore shares while 80.64 lakh shares are reserved for them.

Of this, those who bid in the ₹2 lakh to ₹10 lakh range, subscribed to the issue most at 3.3 times. They bid for 88.62 lakh shares while 25.88 lakh shares were reserved for them.

Meanwhile, corporates, individuals and 'others' subscribed 1.36 times to the IPO, bidding for 72.86 lakh shares of the 53.76 shares on offer.

On the other hand, qualified institutional buyers (QIBs) subscribed 1.62 times to the IPO, bidding for a total of 1.74 crore shares while 1.07 crore shares were reserved for them.

Overview of the company

Steamhouse India is an industrial utility and gas company which specializes in the generation and centralized distribution of steam and compressed nitrogen.

It operates community boilers that are connected to pipeline networks ranging from 45 to 56 km across industrial clusters in Gujarat, including Vapi, Sachin, Ankleshwar, among others.

The companies or industrial units can source steam on demand without installing or maintaining their own boilers.

The nitrogen gas is separated, compressed and distributed via the pipeline, following which third party producers purchase steam from the company for onward distribution.

In the financial year 2026, the company's India revenue was at ₹494.97 crore, up 50% from FY24's ₹293.16 crore in the previous year. Its EBITDA increased to ₹83.49 crore from ₹69.32 crore last year. Its EBITDA margins contracted to 16.87% from 17.4% in the year0ago period and from 23.34% from FY24. Its PAT margin was at 7.81%, nearly the same as the previous year.

Steamhouse India plans to use ₹180 crore from the fresh issue to pay down debt.

The company, in its RHP stated that its revenue mostly comes from Gujarat. Steam generation is heavily reliant on Coal, which accounted for 77.29% of the total purchase cost in FY26. Its top 10 customers contribute nearly 48% of its FY26 operational revenue, and top 10 suppliers contribute 81.71% of the total material purchases in the previous fiscal.

Its total debt is at ₹281.62 crore with debt-to-equity at 1.57x. The business would need continuous capital expenditure for boiler setups and pipeline extensions.

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