Steamhouse India files confidential DRHP with Sebi for IPO; issue size pegged at ₹500–700 cr

Steamhouse India, the country’s first centralised steam supply company for industrial clients, has filed a confidential draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO). While the company hasn't disclosed the exact issue size, sources suggest it could be in the range of ₹500–700 crore.

Earlier this week, two more companies took the confidential pre-filing route for their IPOs. Logistics service provider Shadowfax Technologies submitted a confidential DRHP with Sebi, looking to raise in the range of ₹2,000-2,500 crore. Another firm, Gaja Alternative Asset Management, which operates under the brand name Gaja Capital, also took the confidential pre-filing route, aiming to garner around ₹500-600 crore.

Founded in 2014 and headquartered in Surat, Steamhouse India is a part of the Sanjoo Group, which is in the textiles business. Steamhouse India is led by Chairman & MD Vishal S. Budhia. The company serves over 167 clients across the country and is seen as a pioneer in centralised steam distribution, offering a cleaner, cost-efficient, and tech-enabled alternative to traditional captive boilers.

The company has expansions underway at Pirana, Ahmedabad; Dahej SEZ; Vapi Phase 3; Ankleshwar Phase 3; Panoli Phase 2; Jhagadia; Nandesari Phase 2; and plans to expand operations in Andhra Pradesh, Telangana, Maharashtra, Himachal Pradesh, Madhya Pradesh, Rajasthan, Uttar Pradesh, and Haryana.

Its first waste-to-steam (W2S) boiler at Vapi has already been commissioned, where it takes non-recyclable plastic waste from paper mills and converts it. In March 2024, it secured a 5MW W2S project from Ahmedabad Municipal Corporation. It entailed designing, building and commissioning, and maintaining a 300 tonne per day plant under the PPP model.

As of August 31, 2024, Steamhouse India had a total operational steam capacity of 330 tonnes per hour (TPH) and a distribution capacity of 200 TPH. The company is also diversifying into adjacent sectors, including nitrogen compression and distribution, and the conversion of municipal waste into steam. As part of its expansion plans, Steamhouse has applied for a non-scheduled operator permit (NSOP) to enter the cargo and passenger aviation logistics segment, marking its foray into the broader sustainable infrastructure and logistics ecosystem.

Steamhouse follows a pipeline-based model and has over 45 km of pipeline infrastructure in key industrial hubs such as Sachin, Vapi, Ankleshwar, Sarigram, Panoli and Nadesari. It establishes a monopoly in areas where it operates.

According to its FY24 annual report, Steamhouse India reported total revenues of ₹291.71 crore, while net profit stood at ₹25.97 crore. The company’s Ebitda rose to ₹70.14 crore, up from ₹58.79 crore in the previous fiscal year.

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