Coal India a good bet in PSUs: Gaurang Shah, VP, Geojit BNP Paribas Financial Services

In a chat with ET Now, Gaurang Shah, VP, Geojit BNP Paribas Financial Services, shares his views on PSUs.



ET Now: PSUs will see some dilution. What did you make out of this and what are the stocks you like from the PSU pack?

Gaurang Shah: It was time for the government to start the process of divestment for the majority of holding that it had in the PSU companies. Out of the names that were listed, we have a positive coverage as Coal India

If one is worried that large part of liquidity will be sucked out by these fresh papers that will be hitting the market sometime to come that fear should be put to rest because there is enough funds waiting on the sidelines. Also, the triggers that we have ahead of us, it is not going to be difficult to get them subscribed.

On the primary market front it was very much needed to get confidence back of the retail investors to have a discipline and to hold somebody accountable because we have seen the kind of disaster and capital erosion that some of these primary market issues have made in the past.