Steamhouse deploys Rs 169.47 crore of IPO funds mainly for debt

Steamhouse India Limited (Steamhouse) had deployed Rs 169.47 crore from revised net initial public offering, or IPO, proceeds of Rs 322.506 crore by September 30, 2026. Borrowing repayment or prepayment accounted for Rs 141.895 crore, while only Rs 0.50 crore had been used for its three named capacity and steam-generation projects.

How much of Steamhouse's IPO proceeds had been used?

Steamhouse had used Rs 169.47 crore, leaving Rs 153.036 crore unutilised from revised net IPO proceeds of Rs 322.506 crore as at September 30, 2026. The use disclosed represented 52.5% of the revised net proceeds, two weeks after the company listed on the National Stock Exchange of India Limited and BSE Limited on September 17, 2026.

The IPO aggregated Rs 414 crore and comprised an offer for sale of 7,530,864 equity shares and a fresh issue of 43,580,246 equity shares. Steamhouse's prospectus had estimated net proceeds at Rs 317.252 crore, but the amount was revised upward by Rs 5.254 crore because actual issue expenses were lower than estimates, which included expenses relating to selling shareholders.

Steamhouse increased only the general-corporate-purpose allocation in the revised schedule, to Rs 28.379 crore from Rs 23.125 crore in the prospectus. The Rs 180 crore borrowing allocation and the three project allocations, totalling Rs 114.127 crore, were unchanged from the prospectus amounts.

Where did Steamhouse deploy the IPO money?

Steamhouse deployed Rs 141.895 crore to repay or prepay certain outstanding borrowings, making debt reduction the largest disclosed use by September 30, 2026. That expenditure accounted for 83.7% of the Rs 169.47 crore utilised, with Rs 38.105 crore remaining under the Rs 180 crore allocation.

Steamhouse also used Rs 27.075 crore for general corporate purposes and Rs 0.50 crore for the Panoli facility's Phase 2 capacity expansion. The filing did not provide a further break-up of the general-corporate-purpose spending, while the Panoli amount was the sole reported deployment across the three specifically named capital-expenditure projects.

The disclosed deployment pattern distinguishes IPO-funded spending from other uses of cash. Steamhouse's cash-flow statement recorded Rs 90.263 crore of acquisition spending on property, plant and equipment, capital work-in-progress and intangible assets in the half year ended September 30, 2026, but the IPO schedule identifies only Rs 0.50 crore as utilisation for Panoli Phase 2.

What expansion spending remains unutilised at Steamhouse?

Steamhouse had not used any of the Rs 37.977 crore earmarked for Phase 3 capacity expansion at its Ankleshwar facility as at September 30, 2026. The entire allocation remained available, and the filing did not state a completion date, capacity addition or commissioning schedule for that phase.

Steamhouse had used Rs 0.50 crore of the Rs 37.976 crore allocated to Panoli Phase 2, leaving Rs 37.476 crore unutilised. Panoli was therefore the only one of the three named projects to record IPO-funded expenditure at the reporting date, but its utilisation was far below the Rs 27.075 crore applied to general corporate purposes.

Steamhouse also retained the full Rs 38.174 crore set aside for a manufacturing facility to generate steam at Dahej Gujarat Industrial Development Corporation, or GIDC, Phase 2. Together, Ankleshwar, Panoli and Dahej had Rs 113.627 crore unutilised against their combined revised allocation of Rs 114.127 crore.

How did Steamhouse's reported borrowings change after the IPO?

Steamhouse reported total borrowings of Rs 267.242 crore at September 30, 2026, compared with Rs 281.622 crore at March 31, 2026, a reduction of Rs 14.38 crore. Current borrowings decreased by Rs 35.003 crore to Rs 147.494 crore, while non-current borrowings increased by Rs 20.623 crore to Rs 119.748 crore.

Steamhouse's Rs 141.895 crore use of IPO funds for debt cannot be directly matched to the Rs 14.38 crore movement in reported total borrowings. In its half-year cash flows, the company reported net proceeds of Rs 20.623 crore from non-current borrowings and net repayments of Rs 27.069 crore from other borrowings, alongside a Rs 5.743 crore debenture redemption premium.

Steamhouse's total liabilities fell to Rs 401.511 crore at September 30 from Rs 506.68 crore at March 31, 2026. Current liabilities declined to Rs 207.904 crore from Rs 336.598 crore, including trade payables to parties other than micro and small enterprises, which fell to Rs 10.553 crore from Rs 91.647 crore.

What does Steamhouse's cash flow show about the IPO proceeds?

Steamhouse recorded Rs 383.173 crore of proceeds from issuance of equity share capital, net of offer-related expenses, in financing cash flows for the half year ended September 30, 2026. The cash-flow statement separately says it excludes amounts received in the public-offer account for the offer for sale and their disbursement to the promoter selling shareholder.

Steamhouse's other bank balances rose to Rs 175.845 crore at September 30 from Rs 10.332 crore at March 31, while cash and cash equivalents were Rs 0.464 crore, compared with Rs 0.179 crore. Investing cash flow included Rs 158.056 crore for movement in bank fixed deposits of less than 12 months, a category distinct from cash and cash equivalents.

Steamhouse's equity increased to Rs 576.961 crore at September 30 from Rs 172.78 crore at March 31, 2026. Equity share capital rose to Rs 55.281 crore from Rs 45.195 crore and other equity increased to Rs 521.68 crore from Rs 127.585 crore during the half year that included the September 17 listing.

Conclusion

Steamhouse had put more than four-fifths of its Rs 169.47 crore IPO deployment toward borrowing repayment or prepayment by September 30, 2026. General corporate purposes absorbed Rs 27.075 crore, whereas just Rs 0.50 crore had reached Panoli Phase 2 and no IPO funds had yet been deployed at Ankleshwar Phase 3 or Dahej GIDC Phase 2.

The next point to watch is the use of Rs 153.036 crore still unutilised at September 30, including Rs 113.627 crore allocated to Ankleshwar, Panoli and Dahej projects and Rs 38.105 crore still earmarked for borrowings. Steamhouse's disclosed schedule does not give target dates for those remaining IPO-funded expenditures.