Mumbai: The sale process for Polaris Smart Metering has advanced further, with four-five infrastructure majors shortlisted for the next round of negotiations for the company owned by I Squared Capital, people aware of the development said.Adani Energy Solutions, Apraava Energy and PE fund Actis are among the companies that have progressed to the second round of negotiations. They have commenced due diligence and the binding bids are expected by early August, the people said.The deal may value Polaris Smart Metering about ₹1,500 crore (more than $150 million), the people said.I Squared is exploring an exit from the company that provides smart electric and gas meters for residential, commercial and industrial consumers, ET first reported in April. The $55 billion infrastructure-focused asset manager invested $100 million in February 2023 to acquire a controlling stake in the company through its ISQ Growth Markets Infrastructure Fund (ISQGMF).Spokespeople for Adani Energy and Apraava Energy declined to comment, while emails sent to I Squared Capital and Actis did not elicit any responses till press time Sunday.Cos enter second round of talks; due diligence begins, binding bids expected by early AugustISQGMIF holds the majority stake in Polaris Smart Metering, Singapore (PSMPL-Singapore) while the remaining stake is held by Samunnati, Singapore. Yashraj Khaitan holds 100% of Samunnati.Polaris Smart Metering has secured meter installation contracts in Uttar Pradesh and West Bengal. In Uttar Pradesh, the company is executing a contract with Madhyanchal Vidyut Vitran Nigam to install 5.1 million smart meters in the Lucknow and Ayodhya clusters, according to its website. In West Bengal, it has won a contract for the installation of 2.2 million smart meters.The government is aggressively driving the Revamped Distribution Sector Scheme, which aims to install 250 million prepaid smart meters by 2027 to reduce aggregate technical and commercial losses. The programme entails an estimated investment of ₹1.35 lakh crore, with implementation and related opportunities expected to extend through 2035.Smart meters are digital devices that automatically measure and transmit energy consumption data, allowing for real-time usage monitoring and accurate billing.Smart meter penetration in India, at just 5-6%, remains significantly lower than in developed markets such as Japan (100%) and the US (73%), and is also well below the global average of 43%, highlighting the urgent need to bridge the gap and improve energy efficiency, according to a CareEdge report released last year.The growing market opportunity has triggered a rise in acquisitions, with companies looking to scale up and expand their market presence.Last month, Adani Energy Solutions acquired smart metering company IntelliSmart Infrastructure for ₹3,050 crore. IntelliSmart is among the top three contenders in India's smart metering segment, with 22 million meters across Uttar Pradesh, Gujarat, Madhya Pradesh, Bihar, and Assam.UK-based fund Actis had formed a JV last year with EDF India to operate a dedicated platform company for advanced metering infrastructure service provider concessions.