- According to the Preliminary Information Memorandum issued, the selected bidder will have to lock its shares for three years
- The interested bidders must have a minimum net worth of Rs 50 crore as on March 2019
The government will privatise Central Electronics Ltd ( a CPSE under the Department of Science and Technology). It will sell its 100 per cent stake with management control and has invited the Expression of Interest for it by 16th March.
According to the Preliminary Information Memorandum issued, the selected bidder will have to lock its shares for three years. During this time, it cannot sell its stake in Central Electronics Ltd (CEL).
Strategic Disinvestment with transfer of management control
DIPAM, the Disinvestment Department, said, “The Government of India has ‘in-principle’ decided to disinvest 100 per cent of its equity shareholding in CEL (which is equivalent to 100.00 per cent of the total paid up equity share capital of CEL) through Strategic Disinvestment with transfer of management control (Strategic Disinvestment or Transaction).”
It also said that the interested bidders (can include employees of CEL) must have a minimum net worth of Rs 50 crore as on March 2019. Resurgent India Limited is the advisor to the Transaction.
CEL was established in 1974 with an objective to commercially exploit indigenous technologies developed by National Laboratories and Research and Development institutions in the country.