After Air India, Centre makes a second strategic sale of CEL to Nandal Finance

The process for disinvestment of CEL commenced on October 27, 2016, with the in-principle approval of the CCEA

November 30, 2021

Govt approves 100% stake in Central Electronics Ltd to Nandal Finance

The Centre has approved the sale of a 100 percent stake in Central Electronics Ltd (CEL), a state-owned engineering company, for Rs.210 crore, the Ministry of Finance announced on November 29. Two bidders had put in financial bids for CEL — Nandal Finance and Leasing Pvt Ltd for Rs.210 crore and JPM Industries Ltd bid for Rs.190 crore. This is the second strategic stake sale by the government after Air India.

“The alternative mechanism has approved the highest price bid of M/s Nandal Finance and Leasing Pvt Ltd for sale of 100% equity shareholding of GoI 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.

A Reserve Price of Rs.194 crore was fixed by the Transaction Adviser and the Asset Valuer.

“The entire disinvestment process has been carried out in a transparent manner, with due regard to confidentiality of the bidders, through multi-layered decision making involving Inter-Ministerial Group, Core Group of Secretaries on Disinvestment, and the empowered alternative mechanism at the apex ministerial level,” the Ministry of Finance said in a statement.

“Transaction Adviser, Legal Adviser, Asset Valuer as professionals in their respective fields, have supported the entire process.”

As per the ministry, the next step will be to issue the Letter of Intent (LoI) and then sign the Share Purchase Agreement, following which, the conditions precedent would need to be satisfied by the “successful bidder, the company and government”.

The process for disinvestment of CEL commenced on October 27, 2016, with the in-principle approval of the CCEA.

[With Inputs from IANS]

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