JSW Energy, Actis, and Gemstar Infra are in the final round to acquire Polaris Smart Metering, with a potential deal value estimated between ₹1,800 crore and ₹2,000 crore. Current owner I Squared Capital is looking to exit the investment. Binding bids are expected by the end of October.
The competitive bidding process to acquire Polaris Smart Metering has reached a critical stage. JSW Energy, Actis (participating through its Bharat Grid joint venture), and Gemstar Infra have been shortlisted as the leading candidates to take over the firm. The sale process is now moving toward final negotiations, with binding financial offers expected from these parties by the end of October 2026.
Polaris Smart Metering has become a highly sought-after asset due to its substantial presence in the Indian power distribution sector. The company is currently executing a large-scale project in Uttar Pradesh, valued at approximately ₹5,200 crore, involving the installation of 5.1 million units across Lucknow and Ayodhya for Madhyanchal Vidyut Vitran Nigam Limited. It also manages a major contract in West Bengal for the installation of 2.2 million meters. These government-backed mandates have made the company an attractive target for players looking to expand their footprint in the infrastructure and smart grid space.
For I Squared Capital, the US-based infrastructure fund, this potential sale represents an exit strategy from its 2023 investment. The fund had deployed $100 million into the company roughly 20 months ago. A successful deal within the projected range of ₹1,800 crore to ₹2,000 crore would provide a liquidity event for the fund, though the final valuation remains subject to the outcome of the bidding process.
Investors looking at the bidders should consider both the strategic potential and the underlying risks. While entering the smart metering sector offers a path to growth as utilities modernize their networks, the business comes with significant execution risks. Companies in this space must manage large-scale, complex installations across different regions, often while dealing with payment timelines from government-run utility boards.
Furthermore, the financial health of the target is a key factor. While the company holds large contracts, prospective buyers will likely scrutinize its historical financial performance, including past periods of net losses. There is also the risk of competitive pressure; if the bidding process drives the acquisition price too high, it may become more difficult for the winning bidder to generate an attractive return on investment. The long-term success of such an acquisition will depend heavily on the ability to manage project costs, ensure timely execution, and navigate the regulatory dependencies associated with the government's power distribution schemes.
The market will track the upcoming binding bids, which will determine the final buyer and the ultimate price paid for the assets. The ability of the acquiring company to scale these projects without significant cost overruns will be a primary monitorable for shareholders in the months following the deal.