IPO-bound Steamhouse India Limited has raised Rs 50 crore in a pre-IPO placement from Madhusudhan Kela-backed Singularity Large Value Fund III and Singularity Equity Fund I, along with Niveshaay Sambhav Fund, at Rs 73 per equity share. The Surat-based company has filed its updated draft red herring prospectus (UDRHP) with the Securities and Exchange Board of India (SEBI).

Following the allotment, the three investors together hold about 2.94 per cent of Steamhouse India's pre-offer equity share capital. Under SEBI regulations, the proposed fresh issue in the IPO will be reduced by the amount raised through the pre-IPO placement. Steamhouse India allotted 68,49,315 equity shares through a private placement. 

Singularity Large Value Fund III received 47,94,520 shares worth Rs 34.99 crore, Singularity Equity Fund I got 6,84,932 shares worth Rs 5 crore, and Niveshaay Sambhav Fund received 13,69,863 shares aggregating Rs 9.99 crore. Founded in 2014 and backed by the industrial legacy of the Sanjoo Group, the company says it pioneered centralised steam supply for industrial customers in India.

Steamhouse India operates one of the country's largest industrial steam distribution networks and serves more than 167 industrial clients across chemicals, textiles, pharmaceuticals, food processing, paper and manufacturing. Through its centralised utility model, it supplies steam directly to factories through dedicated pipelines. 

Steamhouse India introduced community boilers as an alternative to captive boilers to help customers reduce costs, improve efficiency and lower emissions. It uses IoT and AI across procurement, generation and distribution to deliver steam at about 190 degrees Celsius.

It has built more than 45 kilometres of pipeline infrastructure across Sachin, Vapi, Ankleshwar, Sarigam, Panoli and Nandesari. Steamhouse is expanding capacity in 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.

In line with its sustainability focus, Steamhouse has commissioned a waste-to-steam boiler at Vapi that converts non-recyclable plastic waste from 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 model.

Beyond steam distribution, the company is expanding into nitrogen compression and distribution, waste-to-energy solutions and aviation logistics. Equirus Capital Limited is the sole book running lead manager to the issue, as the company heads towards its IPO after raising nearly Rs 50 crore through the pre-IPO placement.