The competitive race to acquire Polaris Smart Metering has advanced significantly, with global asset manager I Squared Capital shortlisting four to five infrastructure majors for the next round of negotiations. Strategic giants Adani Energy Solutions, Apraava Energy, and UK-based private equity fund Actis are among the frontrunners who have progressed to the second round.
The suitors have commenced deep financial and operational due diligence, with binding bids expected by early August. The transaction is projected to value Polaris at approximately ₹1,500 crore (over $150 million).
I Squared Capital Eyes a Clean Exit
The sale process marks a definitive exit strategy for I Squared Capital, a $55 billion infrastructure-focused asset manager.
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The Investment Timeline: I Squared acquired its controlling stake just over three years ago, in February 2023, injecting $100 million into the platform through its ISQ Growth Markets Infrastructure Fund.
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Corporate Structure: The majority stake in Polaris Smart Metering is held via its Singapore parent entity, while the remaining shares are held by Samunnati Singapore, a company wholly owned by entrepreneur Yashraj Khaitan.
Polaris has built a strong regional footprint, securing massive installation contracts across northern and eastern India. It is currently executing a contract with Madhyanchal Vidyut Vitran Nigam to deploy 5.1 million smart meters across the crucial Lucknow and Ayodhya clusters in Uttar Pradesh, alongside a separate contract for 2.2 million smart meters in West Bengal.
Driven by India’s Mega Smart Metering Mandate
The aggressive institutional bidding for Polaris is fueled by the Indian government’s massive Revamped Distribution Sector Scheme (RDSS). The ambitious central program aims to replace legacy systems with 250 million prepaid smart meters by 2027 to curb chronic technical and commercial distribution losses.
The National Scale: The RDSS program represents an estimated investment of ₹1.35 lakh crore, with implementation and service-related contracts projected to create steady revenue streams extending through 2035.
Currently, India’s smart meter penetration sits at a meager 5-6%—massively lagging behind developed power markets like the United States (73%) and Japan (100%), and trailing well below the global average of 43%. This vast untapped market has triggered a major wave of corporate consolidation as infrastructure platforms race for immediate scale.
Pre-Emptive Market Moves
The shortlisted bidders are rapidly expanding their smart utility footprints through inorganic growth:
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Adani Energy Solutions: Just last month, Adani significantly consolidated its position by acquiring market leader IntelliSmart Infrastructure for ₹3,050 crore, absorbing an impressive portfolio of 22 million meters across five Indian states.
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Actis: The UK fund laid its groundwork last year by entering a joint venture with EDF India, creating a dedicated platform tailored specifically to bid for advanced metering infrastructure concessions.
