Subscribe for Steamhouse India Ltd IPO; Anand Rathi

New business data points to the fact that Anand Rathi, Steamhouse India Ltd

Incorporated in June 2015, SteamHouse India is an industrial utility solutions provider engaged in the generation, sourcing and centralized distribution of steam and nitrogen to industrial customers through its extensive pipeline network. The firm’s industrial gas business consists of generation and distribution of steam through its community boiler system and pipelines; purchase of steam produced by other steam generating entities and distribute it to its customers through its pipeline and extract nitrogen from atmospheric air by separating it from other atmospheric gases, compressing it and supplying purified nitrogen through its pipeline network. The firm’s community-based infrastructure enables customers to outsource utility generation, thereby reducing the need for individual infrastructure and associated operating costs. at present operates 7 community steam boilers (6 owned and 1 leased) in Gujarat with a combined installed plant capacity for steam aggregating 345 tonnes per hour, which translates to an annual installed capacity of 21,85,920 tonnes per annum. These plants are in Ankleshwar, Vapi, Sachin GIDC, Sarigam, Dahej, Nandesari and Panoli.

Steamhouse India is well positioned to benefit from the recovery in capacity utilisation across the chemical industry, given its established steam generation and distribution operations in Gujarat. Thus, we assign a “Subscribe for Long Term” rating for the offering.

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