The government has cleared the sale of all its shares in Central Electronics Limited
The government has cleared the sale of its entire 100% stake in Central Electronics Limited (CEL), a state-owned engineering company, to Nandal Finance and Leasing Private Limited for Rs 210, a statement by Ministry of Finance said on Monday.
The government said it “won the bid of Rs 210,0060000”.
The statement added that the sale of Government shares in CEL has been empowered by the Cabinet Committee on Economic Affairs (CCEA) to empower the alternative mechanism, which includes Union Ministers Nirmala Sitharaman, Nitin Gadkari and Jitendra Singh.
Nandal Finance’s winning bid is higher than the Rs 194 crore starting price set for the strategic acquisition.
“The entire divestment process was carried out in a transparent manner, with an emphasis on the confidentiality of contractors, through multi-tiered decision-making with the participation of the inter-ministerial team (IMG), the secretariat divestment core (CDG) and Empowered Alternative Mechanism (AM) at the ministerial level.
The government added that it expects the transaction to be completed in the current fiscal, which is between 2021 and 22.
Interestingly, the divestment process for CEL began in October 2016. However, no financial bids were received in the initial attempt to sell the company.
Official sources said a reinvestment process was then started last February.
