Madhusudan Kela-backed fund buys stake in IPO-bound Steamhouse India for Rs 40 crore

Ace investor Madhusudan Kela-backed Singularity Large Value Fund III and Singularity Equity Fund I, along with Niveshaay Sambhav Fund, have invested a combined Rs 49.99 crore in IPO-bound Steamhouse India through a pre-IPO placement at an issue price of Rs 73 per equity share.As part of the transaction, Steamhouse India allotted 68,49,315 equity shares through a private placement.

Singularity Large Value Fund III received 47,94,520 equity shares aggregating Rs 34.99 crore, while Singularity Equity Fund I was allotted 6,84,932 equity shares worth Rs 5 crore.

Niveshaay Sambhav Fund received 13,69,863 equity shares aggregating Rs 9.99 crore.Following the allotment, the three investors together hold around 2.94% of Steamhouse India's pre-offer equity share capital.

In accordance with SEBI regulations, the size of the proposed fresh issue under the company's initial public offering will be reduced by the amount raised through the pre-IPO placement.About SteamhouseThe Surat-headquartered company has already filed its Updated Draft Red Herring Prospectus (UDRHP) with the Securities and Exchange Board of India (SEBI) for its proposed public issue.

Founded in 2014, Steamhouse India operates a centralized steam supply model for industrial customers and serves more than 167 clients across sectors including chemicals, textiles, pharmaceuticals, food processing, paper and manufacturing.

The company supplies steam directly to factories through a network of dedicated pipeline infrastructure.Its business model is based on centralized "community boilers", which serve as an alternative to captive boilers used by individual factories.

The company uses IoT and AI-enabled systems across procurement, generation and distribution processes to supply industrial steam at approximately 190 degrees Celsius.Steamhouse has developed more than 45 kilometres of pipeline infrastructure across industrial clusters such as Sachin, Vapi, Ankleshwar, Sarigam, Panoli and Nandesari.

The company is also expanding capacity across Ahmedabad, Dahej, Vapi, Ankleshwar, Panoli, Jhagadia and Nandesari, while evaluating opportunities in Andhra Pradesh, Telangana, Maharashtra, Himachal Pradesh, Madhya Pradesh, Rajasthan, Uttar Pradesh and Haryana.As part of its waste-to-energy initiatives, the company has commissioned a waste-to-steam boiler at Vapi that converts non-recyclable plastic waste generated by paper mills into industrial steam.

It has also secured a 5 MW Waste-to-Steam project from Ahmedabad Municipal Corporation under the public-private partnership (PPP) model.Apart from steam distribution, Steamhouse is expanding into adjacent businesses such as nitrogen compression and distribution, waste-to-energy solutions and aviation logistics.

Equirus Capital is the sole book-running lead manager to the issue.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own.

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