Steamhouse India is likely to hit the primary markets soon as the company, on December 8, filed its Updated Red Herring Prospectus (UDHRP) with SEBI. Earlier in July, the company had filed its DRHP via the confidential route and received approval for the same by October. Here are some key details about the Rs 425 crore issue you must know before the company makes its debut:
#1 Issue Size and BRLMs
The proposed issue is a book-built issue of Rs 425 crore, comprising a fresh issuance worth Rs 345 crore. Of the fresh issue component, the company may raise up to Rs 15 crore in the pre-IPO round.
The offer-for-sale component is worth Rs 80 crore, being offloaded by the company’s promoter, Vishal Sanwarprasad Budhia, who is also the Chairman and MD of Steamhouse India.
Equirus Capital will handle the company’s issue, while KFin Technologies is the registrar to the offer.
#2 Steamhouse India IPO: Utilization of Funds
Of the total raised capital of Rs 345 crore via the issuance of fresh shares, Rs 150 crore will be deployed towards repayment of the company’s debt, while nearly Rs 70.9 crore will be directed towards funding the capital expenditure requirement for the capacity expansion of its existing manufacturing facilities.
Around Rs 37.3 crore will be chanelled towards setting up a new manufacturing plant, while the remaining balance is expected to be utilised for general corporate purposes.
#3 Steamhouse India IPO: Reservation Size
As per SEBI regulations, 50% of the IPO is reserved for Qualified Institutional Buyers, 15% for Non-Institutional Investors, and the remaining 35% for Retail Individual Investors.
#4 Steamhouse India IPO: Risk Factors
Some of the key risks that the company faces are limited operations due to geographical constraints, heavy reliance on the top ten customers for revenue generation, high dependency on the availability of raw materials like coal, revenue generation from related-party transactions, and heavy dependence on limited suppliers.
Further, in the past, the company has faced regulatory actions, penalties, and non-compliance permits from the Gujarat Pollution Control Board. The company is also vulnerable to risks related to renewing rights for usage of pipelines, and tax and statutory proceedings worth Rs 5.2 crore are pending against the company.
#5 Steamhouse India IPO: FY25 financial performance
The company’s revenue from operations for FY25 stood at Rs 395.1 crore, up nearly 35% from its revenue for FY24, which stood at Rs 291.7 crore. The company’s profit after tax for FY25 was recorded at Rs 31.1 crore.
For Q2FY26, the company’s revenue generated from operations stood at Rs 238.4 crore, with repeat customers accounting for nearly 97% of the revenue from operations. Steamhouse India’s profit after tax for the same quarter was reported at Rs 13 crore.
It is also important to note that the tentative dates for allotment, bidding, and the lot size for the issuance of fresh shares are yet to be disclosed by the company.