Steamhouse India Completes Near Rs 50 Crore Pre-IPO Funding Deal, Signaling Strong Confidence Ahead of Public Offering
Industrial steam utility provider Steamhouse India Ltd has secured substantial pre-IPO funding, solidifying its financial footing ahead of its planned public listing. The company successfully raised nearly ₹50 crore through a private placement round, attracting major investment from funds backed by Madhusudhan Kela and Niveshaay Sambhav Fund.The funding injection comes as the company prepares for an Initial Public Offering (IPO), bolstering its strategic expansion plans across critical industrial zones. This move underlines increasing investor confidence in the essential infrastructure services provided by Steamhouse India.
Details of the Pre-IPO Placement
Steamhouse announced the successful completion of the placement on Thursday, detailing the transaction structure. The company allotted 68,49,315 equity shares at an issue price of ₹73 apiece. This private placement successfully raised a total aggregate amount of ₹49.99 crore.The funding saw participation from key institutional players. Singularity Large Value Fund III invested ₹34.99 crore for 47.94 lakh equity shares. Furthermore, Niveshaay Sambhav Fund contributed ₹9.99 crore, acquiring 13.7 lakh equity shares.
Singularity Equity Fund I also participated in the round, subscribing to 6.85 lakh equity shares valued at ₹5 crore. Following this allotment, these three investors collectively hold around 2.94 per cent of Steamhouse India's pre-offer equity share capital.
IPO Structure and Use of Proceeds
The successful private placement means that the intended fresh issue size under the upcoming IPO will be adjusted accordingly. Steamhouse had filed its updated draft red herring prospectus (DRHP) with Sebi in December for the proposed public offering.As per the current draft papers, the forthcoming IPO is structured as a combination offering. It includes a fresh issue of shares valued at ₹345 crore. Additionally, there is an Offer For Sale (OFS) component amounting to ₹80 crore by promoter Vishal Sanwarprasad Budhia.
The proceeds generated from the fresh issue are earmarked for critical business expansion. The funds will be utilized to repay existing company debt and significantly expand capacity at its Ankleshwar and Panoli facilities.
Industrial Reach and Operational Strength of Steamhouse India
Established in 2014, Steamhouse operates a robust model providing industrial steam through centralized utility services. This service delivery is facilitated by extensive dedicated pipeline infrastructure across industrial clusters.The company currently serves over 167 industrial clients. These clients span diverse sectors, including chemicals, textiles, pharmaceuticals, food processing, paper, and general manufacturing.
Steamhouse has successfully constructed more than 45 kilometres of steam pipeline network. This network covers key industrial areas such as Sachin, Vapi, Ankleshwar, Sarigam, Panoli, and Nandesari. The company continues its growth trajectory by planning capacity expansions in Ahmedabad, Dahej, Jhagadia, and Vapi.
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