The government on Monday approved sale of Central Electronics Ltd to Nandal Finance and Leasing for Rs 210 crore. This is the second strategic sale in the current financial year.
CEL, which comes under the Ministry of Science and Technology, was formed in 1974. The company is a leader in the field of solar photovoltaics (SPV) and has developed the technology with its own R&D efforts. The company has also developed ‘Axle Counter System’ which is being used in Railway Signaling System for safe running of trains.
The government had issued a request for Expressions of Interest (EOI) on February 3, 2020, following which three EoIs were received. However, only two companies – Nandal Finance and Leasing Pvt Ltd and JPM Industries Ltd – put in financial bids by October 12, 2021.
Nandal Finance & Leasing Pvt Ltd of Ghaziabad bid for Rs. 210 Crore while JPM Industries placed a bid of Rs 190 crore.
“The Alternative Mechanism has approved the highest price bid of M/s Nandal Finance and Leasing Pvt Ltd for sale of 100 per cent 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.
The Alternative Mechanism (AM) on strategic disinvestment of CEL comprised Road Transport Minister Nitin Gadkari, Finance Minister Nirmala Sitharaman and Minister of State for Science and Technology Jitendra Singh.
The next step will be to issue the Letter of Intent (LoI) and then sign the Share Purchase Agreement.
It is expected that the transaction will be completed during current FY 2021-22 (ending March 2022), the statement added.
Based on the valuations by the transaction adviser and the asset valuer, the government had arrived at a reserve price of Rs 194 crore for CEL.
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, the statement said.