The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has given its approval for delinking Rajasthan Electronics & Instruments Limited (REIL), Jaipur, from its parent company Instrumentation Limited (IL) and turn it into an independent Central Public Sector Enterprise (CPSE) under Department of Heavy Industry.
Government of India will buy IL shareholding of 51% (62,47,500 shares of face value of Rs.10 each) at book value of Rs.77.09 per share, a fair valuation which comes to Rs.48.16 crore, as on 31.03.2015.
This will result in conversion of REIL in to an independent CPSE with greater autonomy to capitalize on the available business opportunities and freedom to approach capital markets for its expansion. It will help REIL to attain a level of growth commensurate with its potential.
Background:
REIL was incorporated in 1981, with an initial authorized and paid up capital of Rs.40 lakh, as a Joint Venture company of IL and Rajasthan State Industrial Development and Investment Corporation, Jaipur (RIICO).