Industrial steam utility provider Steamhouse India Ltd has raised nearly ₹50 crore through a pre-IPO placement from funds backed by investor Madhusudhan Kela and Niveshaay Sambhav Fund, ahead of its proposed initial public offering (IPO).
In a public announcement on Thursday, the company said it has allotted 68,49,315 equity shares at an issue price of ₹73 apiece, raising an aggregate ₹49.99 crore through a private placement.
Under the transaction, Singularity Large Value Fund III invested ₹34.99 crore for 47.94 lakh equity shares, while Singularity Equity Fund I subscribed to 6.85 lakh equity shares worth ₹5 crore. Niveshaay Sambhav Fund invested ₹9.99 crore and received 13.7 lakh equity shares.
Following the allotment, three investors together hold around 2.94 per cent of Steamhouse India’s pre-offer equity share capital.
In accordance with markets regulator Sebi norms, the proposed fresh issue size under the IPO will be reduced by the amount raised through the pre-IPO placement.
The Surat-based company filed its updated draft red herring prospectus (DRHP) of India (Sebi) in December for its proposed public issue.
As per the updated draft papers, the IPO will be a combination of a fresh issue of shares worth ₹345 crore, along with an offer for sale (OFS) of shares valued ₹80 crore by promoter Vishal Sanwarprasad Budhia.
Proceeds from the fresh issue will be used to repay part of the company’s existing debt, expand capacity at its Ankleshwar and Panoli facilities, set up a new steam-generation unit in the Dahej SEZ, and meet general corporate requirements.
Established in 2014, Steamhouse India supplies industrial steam to customers through a centralised utility model using dedicated pipeline infrastructure. The company serves over 167 industrial clients across sectors, including chemicals, textiles, pharmaceuticals, food processing, paper and manufacturing.
The company has built over 45 kilometres of steam pipeline network across industrial clusters such as Sachin, Vapi, Ankleshwar, Sarigam, Panoli and Nandesari, and is expanding capacity across several locations, including Ahmedabad, Dahej, Jhagadia and Vapi.