Govt clears strategic sale of Central Electronics

The government has approved a 100 per cent strategic sale along with transfer of management control of Central Electronics Ltd (CEL).
Incorporated in 1974, CEL is under the administrative control of Ministry of Science and Technology. The CPSE is wholly owned by the government and has a net worth of Rs 50.34 crore as on March 2017.
"The Government of India (GoI) has 'in-principle' decided to disinvest its 100 per cent equity in Central Electronics Ltd through strategic sale with transfer of management control," Department of Investment and Public Asset Management (DIPAM) said a bid document.
The government plans to engage an advisor from a consulting firm, investment banker or a merchant banker or a financial institution, for providing advisory services and managing the disinvestment process.

Besides, it also is looking to appoint a legal firm for advising on strategic sale of CEL.
The selected entity will advise the government on the modalities and the timing of the strategic disinvestment of CEL and will prepare and submit a detailed operational scheme to implement the strategic disinvestment process, indicating tentative timelines for each activity.

The advisor will be required to finalise the process of strategic disinvestment through bidding/auction, said the bid document for advisors. The last date for application is September 19, 2017.
"Bidders should have advised, handled and successfully completed at least one transaction of strategic disinvestment or strategic sale or merger & acquisition or private equity investment transaction of the size of Rs 50 crore or more during the April, 2014 to March, 2017," the document said.

The government has budgeted to raise 72,500 crore in 2017-18 through stake sale in PSUs.
This includes Rs 46,500 crore from minority stake sale, Rs 15,000 crore from strategic disinvestment and Rs 11,000 crore from listing of PSU insurance companies.