Central Electronics Limited was cleared for sale by the Cabinet Committee on Economic Affairs (CCEA) for Rs 2.1 billion to Nandal Finance and Leasing. Following Air India, the government is selling its second strategic stake.
In February 2020, the government released a request for Expressions of Interest (EOI), and three EoIs were received. In October 2021, however, only two entities, Nandal Finance and Leasing and JPM Industries Limited, submitted financial offers. Nandal Finance and Leasing of Ghaziabad bid Rs 2.1 billion, whereas JPM Industries quotes Rs 1.9 billion.
The Alternative Mechanism (AM) on strategic disinvestment of CEL comprised Road Transport Minister, Finance Minister and Minister of State for Science and Technology. The next phase will be to issue a Letter of Intent (LoI) and then sign the share purchase agreement, after which the successful bidder, the company, and the government must all meet the pre-requisite conditions. The acquisition is expected to be finalised during the current fiscal year. The higher of the two price bids, submitted by M/s Nandal Finance and Leasing Private Limited, was found to be above the reserve price.
After the Cabinet approved CEL’s disinvestment in October 2016, the government started the process of strategic sale for the second time. There were no cash offers submitted in the initial round. In February 2020, the sale procedure was reopened.