The Union Government on Monday announced that it has approved the strategic divestment of Central Electronics Ltd CEL a CPSE under the Department of Scientific and Industrial Research DSIR. The winning bid was by Nandal Finance and Leasing Ltd for Rs 210 crore.
This is the second strategic stake sale by the government after Air India.
The highest price bid of M Nandal Finance and Leasing Pvt Ltd has been approved by the Alternative Mechanism for the sale of 100% of the GoI's shareholding in Central Electronics Ltd CEL, a CPSE under the Department of Scientific and Industrial Research DSIR. The winning bid is for Rs 210,00, 60000, an official statement said.
The Alternative Mechanism AM on strategic disinvestment comprises road transport minister Nitin Gadkari, finance minister Nirmala Sitharaman and Minister of State for Science and Technology Jitendra Singh.
Two bidders had put in financial bids for CEL Nandal Finance and Leasing Pvt Ltd for Rs 210 crore and JPM Industries Ltd for Rs 190 crore.
The higher of the two price bids submitted by M s Nandal Finance and Leasing Pvt Ltd was found to be above the reserve price, according to the statement.
The whole process of disinvestment has been carried out in a transparent manner, with due regard to the confidentiality of the bidders through multi-layered decision making involving the Inter-Ministerial Group IMG Core Group of Secretaries on Disinvestment CDG and the empowered Alternative Mechanism AM at the apex Ministerial level. The transaction Adviser, Legal Adviser, Asset Valuer and others in their respective fields have supported the whole process, the government said in a statement.
The next step is to issue a Letter of Intent LoI and then sign the Share Purchase Agreement, following which the conditions precedent would need to be met by the successful bidder, the company and government. It is expected that the transaction will be completed during current FY 2021 -- 22.