The government received financial bids of ₹210 crores from Nandal Finance and Leasing Pvt. Ltd and for ₹190 crores from JPM Industries Ltd
The government has approved a bid by Nandal Finance and Leasing Pvt Ltd to acquire state-owned Central Electronics Ltd for Rs 210 crore.
In an official statement, the government said the decision was taken by a committee comprising of Union ministers Nitin Gadkari, Nirmala Sitharaman, and Jitendra Singh. Central Electronics is run by the department of scientific and industrial research and is the second strategic stake sale for the government this year after Air India.
The process to divest the government’s stake in the company started in 2016 with an in-principle approval by the cabinet committee on economic affairs. After a previous privatization attempt by failed to take off in 2019, the Centre initiated the process in February 2020 through a preliminary information memorandum and a request for expressions of interest.
The reserve price for the deal was ₹194 crore and the government received financial bids of ₹210 crore from Nandal Finance and Leasing Pvt. Ltd and for ₹190 crore from JPM Industries Ltd.
A letter of intent will be issued before the two parties sign the share purchase agreement, the government said. The deal is expected to be completed in FY22, said the official statement.