🚫 Avoid
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Other Chemical Products
Steamhouse India Limited IPO
₹414 Cr · Fresh Issue & OFS · Other Chemical Products
Price Band
₹77 – ₹81
Lot: 150 shares (₹12,150)
GMP (Grey Market)
—
No GMP data yet
Issue Size
₹414 Cr
Fresh Issue & OFS
Market Cap
₹2238.89 Cr
At upper band
P/E Ratio
57.9x
P/S: 4.6x
Listing Date
17 Sep 2026
BSE & NSE
IPO Timeline
✓
Opens
09 Sep 2026
✓
Closes
11 Sep 2026
📋
Allotment
14 Sep 2026
₹
Refund
15 Sep 2026
📈
Listing
17 Sep 2026
IPO India Hub: Avoid
Conviction
3/10
The company trades at 2.23× the chemicals sector midpoint (57.9x P/E vs. 26x benchmark) with a weak 7.8% net margin that does not justify premium valuation. While revenue growth is solid at 29.9% CAGR, the high leverage (1.57x D/E) and modest SME-class GMP of 8% signal limited institutional confidence.
Our Analysis — Key Points
✓ Strength
Strong revenue expansion trajectory
Revenue has grown from ₹293.2 Cr (FY-2) to ₹495.0 Cr (FY0), delivering a 29.9% two-year CAGR. This demonstrates consistent market traction and capacity utilization in specialty chemicals.
✓ Strength
Promoter commitment and capital discipline
Promoter holding remains high at 78.63% post-issue, and 14.7% of the issue is OFS, indicating limited secondary selling. The company is deploying 43% of proceeds toward debt reduction, prioritizing balance sheet health.
⚠ Risk
Valuation significantly exceeds sector norms
At 57.9x P/E, the company trades at 2.23× the chemicals midpoint of 26x (range 20–32x). This 123% premium is unjustified by a 7.8% net margin, which is below the 15% threshold required to support elevated multiples.
⚠ Risk
Elevated leverage limits financial flexibility
Debt-to-equity of 1.57x is at the upper boundary of acceptable levels and constrains the company's ability to fund growth or weather margin compression. Debt repayment consumes ₹180 Cr of the ₹217.9 Cr net proceeds, leaving limited capital for organic expansion.
₹ Valuation
Premium valuation without margin justification
The 57.9x P/E and 4.6x P/S ratios place the company in the top decile of chemicals valuations. With NPM of only 7.8% and ROCE of 16.06%, the valuation appears stretched relative to profitability and return generation.
👁 Watch
Monitor post-listing margin trajectory
Investors should closely track quarterly net margins and EBITDA trends post-listing. Any compression below 7.5% would signal operational stress and validate the overvaluation thesis.
Top Analyst Reviews
| Analyst / Firm | Rating | Known For | Review |
|---|---|---|---|
| IPO India Hub Our independent review |
Original analysis based on DRHP & public financials | This page | |
| Dilip Davda Chittorgarh.com |
India's most followed independent IPO analyst | Search on Chittorgarh → | |
| Capital Market (CM Rating) CapitalMarket.com |
Widely-cited "New Issue Monitor" reports | Search on CapitalMarket → | |
| ICICI Securities ICICIdirect Research |
SEBI-registered broker research desk | Visit ICICIdirect → | |
| IPO Guru Analyst Leaderboard ipoguru.in |
Ranks 49 analysts by real IPO outcome accuracy | View leaderboard → |
External links go to each platform's IPO section — search for "Steamhouse India Limited" to find the specific review. IPO India Hub does not represent the accuracy of third-party ratings.
Company Snapshot
Revenue
₹491.51 Cr
Net Profit
₹38.64 Cr
Industry
Other Chemical Products
Issue Type
Fresh Issue & OFS
Promoters
VISHAL SANWARPRASAD BUDHIA, RITU BUDHIA, VSB BUSINESS TRUST, BUDHIA BUSINESS TRUST AND VB BUSINESS TRUST
Lead Managers
Equirus Capital
Quick Actions
Frequently Asked Questions
Avoid. The company trades at 2.23× the chemicals sector midpoint (57.9x P/E vs. 26x benchmark) with a weak 7.8% net margin that does not justify premium valuation. While revenue growth is solid at 29.9% CAGR, the high leverage (1.57x D/E) and modest SME-class GMP of 8% signal limited institutional confidence.
GMP data is not yet available for this IPO. Check our GMP Live page for the latest updates closer to the listing date.
The minimum lot size is 150 shares. At the upper band price of ₹81, the minimum investment per retail application is ₹12,150. You can apply for up to 13 lots (₹157,950) under the retail category (up to ₹2 lakh).
The IPO opens on 09 Sep 2026. It closes on 11 Sep 2026. Allotment is expected on 14 Sep 2026. Refunds initiate on 15 Sep 2026. Listing on BSE and NSE is on 17 Sep 2026.
The lead managers for the IPO are Equirus Capital. Check the SEBI filing for the registrar details.
Our analysis recommends <strong>Avoid</strong>. We suggest skipping this IPO before the issue closes on 11 Sep 2026. The minimum investment is ₹12,150 for one lot (150 shares). The company trades at 2.23× the chemicals sector midpoint (57.9x P/E vs. 26x benchmark) with a weak 7.8% net margin that does not justify premium valuation. While revenue growth is solid at 29.9% CAGR, the high leverage (1.57x D/E) and modest SME-class GMP of 8% signal limited institutional confidence.
Our analysis recommends <strong>Avoid</strong>. We suggest skipping this IPO before the issue closes on 11 Sep 2026. The IPO is priced at a P/E of 57.9x. Market cap at issue price is ₹2238.89 Cr. As with all IPOs, please read the DRHP and assess your own risk tolerance before investing.
You can apply via UPI through your broker's trading app (Zerodha, Upstox, Fyers, etc.) or via ASBA through your net banking portal. The minimum lot is 150 shares at ₹81 each, costing ₹12,150 per application. The issue closes on 11 Sep 2026, so apply before that date. Step 1: Log in to your broker or bank app. Step 2: Go to IPO section and search for 'Steamhouse India Limited'. Step 3: Enter the number of lots and UPI ID. Step 4: Accept the mandate on your UPI app.
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