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Steamhouse India IPO: 32x Subscription Drives 20% GMP

By Stocks Desk · 2026-09-17 · 2 min read
A network of large industrial metal pipes and valves in a factory setting
Illustration: Tradingbird

Steamhouse India begins trading today with a 20% grey market premium, backed by 32x subscription and a 24% year-on-year revenue increase.

Steamhouse India Ltd. begins its trading debut on the BSE and NSE today, September 17, with a grey market premium of Rs 16 per share. This premium represents a 20% gain over the issue price of Rs 81, positioning the stock for a potential listing price near Rs 97. According to GN stocks/ipo, the company’s shares were priced at the top of the Rs 77–Rs 81 band after the issue closed on September 11 with 32 times overall subscription.

The Rs 414 crore raise included a fresh issue of Rs 353 crore and an Offer for Sale of Rs 61 crore. Equirus Capital Ltd. acted as the book-running lead manager for the transaction. The strong demand reflects investor confidence in the company’s recent financial trajectory, which saw total income rise 24% year-on-year to Rs 494.97 crore in FY26.

Strong Demand Across Investor Categories

Subscription levels varied significantly by category during the September 9 to 11 window. The Non-Institutional Investor segment saw the highest demand at 46.60 times, while Qualified Institutional Buyers subscribed 46.19 times their allotted quota. Retail investors participated at 18 times subscription. This broad-based demand indicates institutional and retail alignment on the valuation, despite the company’s niche focus on industrial steam and nitrogen distribution.

Proceeds Target Debt Repayment and Expansion

Steamhouse plans to deploy Rs 294.13 crore of net proceeds to strengthen its balance sheet and infrastructure. The largest allocation, Rs 180 crore, will be used to repay or prepay outstanding borrowings, directly reducing the company’s debt burden. This deleveraging strategy aims to improve financial flexibility and lower interest costs, supporting long-term profitability.

Capital expenditure will focus on capacity expansion at existing sites and new facilities. Rs 37.98 crore is earmarked each for the Ankleshwar and Panoli facilities, while Rs 38.17 crore will fund a new steam generation unit at Dahej SEZ. These investments are designed to increase production capacity and extend the company’s service footprint in key industrial hubs.

Revenue Growth Driven by Operational Scale

Financial performance in FY26 showed a 24% increase in total income to Rs 494.97 crore, up from Rs 398.53 crore in FY25. Profit after tax also grew by 24% to Rs 38.64 crore. This growth is underpinned by a pipeline network spanning over 45 km across locations including Sachin, Vapi, and Nadesari, serving clients such as Aether Industries and Anupam Rasayan India.

The company operates through a centralized distribution model, providing steam and nitrogen to industrial customers as an alternative to self-maintained infrastructure. With 229 employees and 276 contract workers as of July 31, 2026, Steamhouse leverages its established network to maintain steady revenue streams. The recent capital raise is expected to support further expansion of this network and operational efficiency.

Based on reporting by The Economic Times, compiled by the Tradingbird desk.

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