National Investment and Infrastructure Fund (NIIF) backed IntelliSmart Infrastructure Pvt Ltd is in talks with global smart metering major CyanConnode to acquire a majority stake in its Indian operations, said two people in the know of the developments. The transaction would be a secondary majority sale along with primary equity raise, they added.
The proposed value of the prospective deal, however, could not be ascertained by Mint.
“The proposed transaction in CyanConnode is a secondary majority stake sale and a primary equity raise. IntelliSmart is eyeing the majority stake,” said one of the two persons mentioned above.
The development comes at a time when the Indian smart meter market is expanding at a massive pace and under the Revamped Distribution Sector Scheme (RDSS) the government aims to install 250 million smart meters by 2025. Several private players including Adani Group, Tata Power and GMR have entered the smart metering space.
Set up as a joint venture of NIIF and Energy Efficiency Services Ltd (EESL) in 2019 as a digital solutions provider for power utilities, IntelliSmart has installed 4.92 million smart meters so far across the country, according to the company website.
With projects bagged in Uttar Pradesh, Assam, Gujarat and Bihar, the company has ramped up its portfolio to nearly 20 million smart meters. Further, it has also been managing and executing EESL’s smart metering projects in five states and two Union territories since 2019. It has installed smart meters in Uttar Pradesh, Haryana, Rajasthan, Bihar, Assam, Delhi (NDMC area), and Andaman & Nicobar islands.
Responding to a mailed query from Mint, IntelliSmart said, “The company does not comment on market speculation. Being a leading digital solutions provider in the power distribution sector, we are open to evaluating opportunities to expand our footprint and deliver innovative solutions.”
UK-headquartered CyanConnode is a global player in the design and development of narrowband radio mesh networks helping consumers connect to smart grids, with contracts covering over 3.9 million end points. Within the energy sector, CyanConnode’s IoT platform enables Advanced Metering Infrastructure (AMI) solutions and provides secure communication between utilities and consumers in UK, India, Iran, and Bangladesh, among others.
The company is in India since 2009 and has established CyanConnode Pvt. Ltd, which includes a local team of sales, project delivery and technical staff, said the company website.
In an email reply, a spokesperson of CyanConnode India said, “These are just rumours. We are listed on the London Stock Exchange and would be required to announce any such investment if it took place. CyanConnode is the leading communication solutions provider for Smart Metering in India and globally on RF, Long Range Radios, and Cellular technologies, with millions of smart meters currently deployed globally communicating on our network. Our subsidiary, DigiSmart Networks Pvt. Ltd, is now empaneled as an AMISP (Advanced Metering Infrastructure Service Provider) in India and is participating in smart metering tenders as a lead bidder,” it added.
In response to a follow-up query seeking clarification on the above-mentioned response, the company spokesperson added, “As mentioned earlier, these are just rumors. We are listed on the London Stock Exchange and would be required to announce any such investment if it took place. We have no further comments at this time.”
According to a recent report by Astute Analytica, India’s smart meter market is projected to attain a market size of nearly $3.18 billion by 2032 from $219.7 million in 2023.
