Steamhouse India IPO subscribed 90% so far on Day 2; GMP at 25%

The latest market report highlights that The initial public offering (IPO) of industrial gas supplier Steamhouse India saw a pick-up in demand on the second day of bidding, with the offering receiving 90 percent subscription as of 12:20 pm on September 10, according to NSE data.

The Rs 414-crore IPO received bids for 3,36,45,395 shares against 3,76,36,363 shares on offer. The retail investor portion was subscribed 1.45 times, while the non-institutional investor (NII) category saw 79 percent subscription.

In the grey market, Steamhouse India shares were commanding a premium of 25 percent on September 10, according to InvestorGain. The grey market premium (GMP) is an unofficial indicator of investor sentiment and does not guarantee the firm's stock-exchange debut price or returns.

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The IPO opened for public subscription on September 9 and will close on September 11. The Rs 414-crore IPO has a price range of Rs 77-81 per share. The offering comprises a fresh offering of shares worth Rs 353 crore and an offer-for-sale (OFS) of shares worth Rs 61 crore by promoter Vishal Sanwarprasad Budhia.

Ahead of the IPO, Steamhouse India boosted Rs 124.2 crore from six anchor market participants. The firm allotted 1.53 crore equity shares to anchor market participants at the upper end of the price range.

Singularity Large Value Fund III, managed by Madhusudan Kela-mentored Singularity AMC, and Kela-backed Chartered Finance & Leasing were the largest anchor market participants. Each acquired 51.97 lakh shares for Rs 42.09 crore.

Abakkus Emerging Opportunities Fund-1, managed by Sunil Singhania's Abakkus Asset Manager, and Emerge Capital Opportunities Scheme, managed by Emerge Capital, each purchased 12.34 lakh shares for Rs 10 crore.

Niveshaay Sambhav Fund, managed by Arvind Kothari-owned Niveshaay Investment Advisors, acquired 18.51 lakh shares for Rs 15 crore, while 31 Degrees North Fund bought 6.17 lakh shares for Rs 5 crore.

Steamhouse India plans to use Rs 180 crore from the net proceeds of the fresh offering to repay debt.

Another Rs 75.9 crore has been earmarked for capacity expansion at its Ankleshwar and Panoli facilities. The funds will additionally backing capital expenditure for a new steam-generation manufacturing facility at Dahej GIDC. The remaining proceeds will be used for general corporate purposes.

Equirus Capital is the merchant banker handling the IPO.

Steamhouse India specialises in generating and centrally distributing industrial gases, including steam and nitrogen, through pipeline networks. The firm says it is the only player in India supplying nitrogen through a distributed pipeline network, rather than through cryogenic tanks or on-site nitrogen generation.