Overall participation in Power Grid FPO not confident: Deven Choksey

In a chat with ET Now, Deven Choksey, MD, KR Choksey Securities, shares his views on Power Grid FPO that starts on Tuesday. Excertps:

ET Now: Power Grid FPO kick-starts on Tuesday; is there upside potential from the higher end of the band?

Deven Choksey: Not really. The government may sail through with their FPOs, but the overhang is that investors are not making money out of the PSUs, and that is where the confidence of the people is not very high.

Some of the large side institutional investors certainly get the opportunity to enter into these kind of companies for longer period of time and the portfolio building. However, I am not sure that the overall participation in Power Grid is very confident.

The people are not very confident of putting money into this particle company just because the government keeps on selling their shares at discounted rates and in turn do the wealth destruction.