Steamhouse IPO: Analysts rate 'subscribe' on capacity expansion, cash flows

Steamhouse India IPO review: Steamhouse India’s initial public offering (IPO) is one of six offers that opened for subscription on Wednesday. The company is seeking to raise ₹414 crore from the primary market to pay off its debt and fund capacity expansion. 

 

Analysts noted its well-established position in the gas generation and distribution industry and deemed Steamhouse India to be the key beneficiary of the recent revival in the capacity utilisation levels among chemical companies. Thus, they assigned a ‘Subscribe’ rating. 

 

Steamhouse India IPO price band, lot size

 

Steamhouse India has set the price band at ₹77–₹81 per share for its IPO. The lot size is 185 shares, which indicates that retail investors require a minimum investment amount of ₹14,985 to apply. 

 

 

The public offer comprises a fresh issue worth ₹353 crore and an offer for sale (OFS) worth ₹61 crore. The IPO will conclude on Friday (September 11), and the allotment will likely be finalised on September 15.  

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Steamhouse India IPO review 

 

Analysts have recommended a ‘Subscribe’ rating on Steamhouse India IPO, noting its established position in the steam generation and distribution business in India. 

 

SBI Securities noted that Steamhouse India reported revenue/Ebitda/PAT CAGR of 29.8 per cent/10.5 per cent/19.2 per cent over FY24 and FY26.  It believes that the company will likely be a key beneficiary of the recent recovery in capacity utilisation levels seen across chemical companies, given it derived 26 per cent of its FY26 revenue from the chemical sector. 

 

The capacity expansions are expected to increase the company's annual steam distribution capacity from 21,85,920 TPA currently to 44,66,880 TPA, according to SBI Securities. 

 

Valuation 

 

At the upper price band of ₹81, the brokerage said that the issue is valued at FY26 P/E multiple of 57.9x based on post-issue capital. "We recommend investors to subscribe to the issue,” said SBI Securities.

 

Swastika Investmart has also recommended 'Subscribe' for long-term investors seeking exposure to a specialised infrastructure-like utility provider with strong entry barriers and capital deployment visibility. Short-term traders should keep expectations modest given the demanding issue valuation.

 

Ventura Securities has recommended 'Subscribe', saying operating cash flow generation is strong at ₹100.46 crore as of March 31, 2026, positioning the company to fund its upcoming capacity expansion and scale its business further. 

 

Steamhouse India GMP 

 

The IPO of Steamhouse India has been showing strong interest in the grey market. The shares of the industrial gas producer were quoted at ₹99, according to various websites that track grey market activities. If the trend sustains, Steamhouse India shares could yield a listing gain of 22.22 per cent above the upper price band.

 

Steamhouse India specialises in the generation and centralized pipeline distribution of industrial gases, primarily steam and nitrogen, for industrial customers.  

 

Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.