3G may generate extra surplus of Rs 20000 cr: Principal Global Investors

Chandgothia Binay, Chief Investment Officer, Principal Global Investors (Asia) in a chat with ET Now talks his perspective on what 3G holds for Indian markets.

Just talking about the kind of PSU issuances we have seen, there is 3G coming as well. Do you think in India there will be a whole lot of people who would subscribe to these issuances and sort of subscribed to that?

Yes, that’s going to be more case specific and depends upon what stock is offered at what price. We saw the experience in the NMDC issue where there was a fair bit of tussle between the price at which it was announced and the price where it got subscribed to, so I guess it is a more case specific issue but yes, broadly speaking if the global investment environment does not kind of stay as good as it has been in the last 6-12 months.

You might see challenges in terms of global investors subscribing to all the issuances that is likely to come out of India but yes on the other side, 3G is positive, so far the response has been very good from the telecom companies and it could help the government kind of generate an extra surplus of about 20000 crores odd this year as compared to what they thought at the start of the year.