Global private equity firm I Squared Capital on Tuesday said it has acquired a controlling stake in Jaipur-based smart metering firm Gram Power for $100 million (around Rs 826.55 crore).
Gram Power is a wholly-owned subsidiary of Singapore-based Polaris Smart Metering Pte Ltd. With this acquisition, the former will soon be rebranded as Polaris. However, the enterprise value of the transaction could not be ascertained.
I Squared Capital, with over $36 billion worth assets under management, made this investment via its $2-billion ISQ growth markets infrastructure fund that aims to invest in the infrastructure sector across growth markets in Asia and Latin America.
Yashraj Khaitan, co-founder and chief executive of Gram Power, said that this is I Squared Capital’s first investment in the smart metering space in India while it has, so far, invested about $1.7 billion in infrastructure assets, including the renewable energy space.
The invested funds will be used to upgrade Gram Power’s manufacturing capabilities to global standards, invest in research and development, talent upskilling and acquisitions, and participate in upcoming tenders, as per a statement.
“This investment by I Squared Capital will create the right synergies for our growth by helping us acquire, finance, and execute large scale projects while building world-class manufacturing facilities, expanding our service offerings, and investing in top quality talent,” Khaitan said.
Founded in 2012 by Khaitan, Gram Power often works with the government after participating in a competitive bidding process to execute smart metering projects. It also works with corporates to offer its smart metering solutions for reducing energy costs.
According to a research by Polaris Market Research, the global electricity meters market size is expected to reach USD 16.98 billion by 2030, growing at annualized rate of 6.3%.
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