Indian SPACs to escalate nearly $ 1 billion through IPOs in the US
Special Purpose Acquisition Companies (SPACs) set up by Indian sponsors and their global partners are raising close to $1 billion through IPOs in the US stock market in the next few months. They are focusing on domestic companies in areas such as media and entertainment, technology, and consumer goods, apart from other markets in Asia.
Rather than go for a traditional IPO, many Indian techs and new-age start-ups that are yet to see profits have been looking at this route to get any easier and quicker listing.
The SPAC is typically targeting Indian companies with an enterprise value of $ 150-500 million and has identified four key areas television and digital content, gaming, exhibition business, and OTT distribution.
A SPAC is a company with no marketable operation and is formed only to raise capital through an IPO for the purpose of acquiring a target company.