Investors in Vibhor Steel Tubes and Borana Weaves are bracing for potential market movements as both companies face the expiration of their shareholder lock-in periods on Thursday, August 21.

Vibhor Steel Tubes Lock-in Expiry

Vibhor Steel Tubes is set to see a significant portion of its shares become eligible for trading. Approximately 38 lakh shares, representing 20% of the company's outstanding equity, will be released from the one-and-a-half-year lock-in period.

The company, which had an impressive initial public offering (IPO) with over 300 times subscription, has experienced a rollercoaster ride in its share price since listing. Vibhor Steel Tubes made a stellar market debut at ₹425.00, marking a 151% premium to its IPO price of ₹151.00. However, the stock has since corrected, returning to levels close to its initial offering price.

Borana Weaves Lock-in Expiry

Simultaneously, Borana Weaves will see the end of its three-month lock-in period. This will result in 15 lakh shares, constituting 6% of the company's outstanding equity, becoming available for trading.

Borana Weaves also witnessed strong investor interest during its IPO, securing nearly 150 times subscription. Unlike Vibhor Steel Tubes, Borana Weaves' share price has remained stable, currently trading at its IPO price of ₹216.00.

IPO Sizes and Market Performance

Both companies conducted relatively modest-sized initial public offerings:

The expiry of these lock-in periods could potentially impact the trading volumes and price movements of both stocks. Investors and market analysts will be closely watching how the newly tradeable shares affect the market dynamics for Vibhor Steel Tubes and Borana Weaves in the coming days.

As always, investors are advised to conduct thorough research and consider their risk appetite before making any investment decisions, especially in light of these upcoming changes in share availability.

Vibhor Steel Tubes Limited (VSTL) has reported a smooth first quarter, with positive turnover reflecting in both top line and margins. The company's Managing Director, Mr. Vibhor Kaushik, shared insights during the recent earnings conference call, highlighting key developments and the company's outlook.

New Jharsuguda Plant Operational

The most significant update is the commencement of operations at VSTL's new plant in Jharsuguda, Odisha. After facing delays in electricity connection, the facility is now fully operational. Key highlights of the new plant include:

• Two tube mills successfully tested and operational
• Currently manufacturing three sizes of steel pipes: 1.5-inch, 2-inch, and 1-inch
• Production of approximately 1,000 tonnes of highway guard rails
• Galvanization of over 500 tonnes of products
• Annual capacity of 100,000-120,000 tonnes, similar to the company's Maharashtra and Telangana plants
• Total CAPEX of ₹120.00 crore

Market Outlook and Strategy

Mr. Kaushik expressed optimism about the company's future, citing several favorable factors:

1. Steady Domestic Demand: The management noted steady domestic demand for steel pipes.
2. Stable Raw Material Prices: Unlike the previous year, the company expects less fluctuation in raw material prices, potentially leading to healthy margin realization.
3. Government Support: Duties imposed by the government have made domestic raw materials more competitive.
4. Expanded Market Reach: With the new Jharsuguda plant, VSTL aims to capture market share in North-East India, West Bengal, Odisha, and Raipur.
5. Existing Dealer Network: The company plans to leverage its existing dealer network, with many dealers already showing enthusiasm and generating enquiries for pipe products from the new plant.

Financial Performance

While specific financial figures were not disclosed, Mr. Kaushik mentioned that the first quarter performance was reflected positively in both the top line and margins. The company expects the new Jharsuguda plant to contribute to growth and turnover from the second quarter onwards.

Future Outlook

VSTL's management described the outlook as very promising, with steady order intake observed. The company is focusing on:

1. Streamlining operations in the new North-East market
2. Achieving full capacity utilization at the Jharsuguda plant
3. Expanding presence across India, with different plants catering to specific regions

Mr. Kaushik concluded the call by stating, "We are viewing this as a very promising year and it should lay a foundation to a very successful and very bright future for this organization in terms of achieving a new turnover and also in terms of achieving the new markets which we have not been able to tap over these years."

As Vibhor Steel Tubes Limited continues to expand its operations and market reach, investors and industry observers will be keenly watching the company's performance in the coming quarters, particularly the impact of the new Jharsuguda plant on overall growth and market share.