Mumbai: The sale process for Polaris Smart Metering has moved to its next stage, with private equity firm Actis, JSW Energy and Gemstar Infra shortlisted for the second round of negotiations, according to people familiar with the development.
The shortlisted bidders have completed due diligence, and binding bids are expected by the end of October. The deal may value Polaris Smart Metering at about ₹1,800-2,000 crore, the people said.
I Squared Capital, the $55 billion infrastructure-focused asset manager, is exploring an exit from its investment in the smart metering company, ET first reported in April. Boutique investment bank Impact Infracap is running the sale process.
The US-based asset manager had invested $100 million to acquire a controlling stake in Polaris Smart Metering through its ISQ Growth Markets Infrastructure Fund in February 2023.
Polaris Smart Metering, one of the leading smart metering players in India, has secured smart meter installation contracts in Uttar Pradesh and West Bengal. In Uttar Pradesh, it is executing a ₹5,200-crore contract with Madhyanchal Vidyut Vitran Nigam Limited to install 5.1 million smart meters across the Lucknow and Ayodhya clusters. In West Bengal, the company has won a contract for the installation of 2.2 million smart meters.
ISQ Growth Markets Infrastructure Fund holds the majority stake in Polaris Smart Metering Private Limited, Singapore, while the remaining stake is held by Samunnati Pte. Limited, Singapore. Yashraj Khaitan holds 100% of the shares of Samunnati.
UK-based fund Actis is bidding through Bharat Grid, a joint venture formed last year with EDF India to operate a dedicated platform company for advanced metering infrastructure service provider concessions.