A Special Purpose Acquisition Company (SPAC) relies on a trust account to safeguard investor capital raised through its Initial Public Offering (IPO). This trust is central to the SPAC model, ensuring transparency, accountability, and investor protection throughout the process. The funds placed in the trust can only be used for specific purposes: completing a merger…
Special Purpose Acquisition Companies (SPACs) have emerged as a popular alternative to traditional IPOs, offering private companies a faster and less complex route to the public markets. A SPAC’s capital structure is a key factor in how these deals are executed and financed. It is designed to balance the interests of public investors, sponsors, and…
Special Purpose Acquisition Companies (SPACs) have emerged as a popular alternative to traditional IPOs, offering private companies a faster and more flexible route to public markets. While the structure may sound complex, the overall process follows a clear sequence—from formation to either a merger or liquidation. Here’s a step-by-step look at how SPACs work: 1.…
Special Purpose Acquisition Companies (SPACs) have gained significant attention in global capital markets as an alternative route for private companies to go public. Unlike traditional Initial Public Offerings (IPOs), SPACs are shell companies that raise money from investors with the sole purpose of acquiring or merging with a private company. Here are the defining features…
A SPAC (Special Purpose Acquisition Company) involves multiple stakeholders, each playing a distinct and important role throughout the formation, acquisition, and post-merger phases. Key Stakeholders in a SPAC 1. Sponsors/Founders 2. Public Shareholders 3. Target Company 4. PIPE Investors (Private Investment in Public Equity) 5. Advisors and Underwriters 6. Regulators All these stakeholders must coordinate…
In recent years, Special Purpose Acquisition Companies (SPACs) have become a widely discussed innovation in global capital markets. A SPAC merger—also known as a de-SPAC transaction—offers private companies an alternative pathway to become publicly listed without going through the longer and more complex traditional Initial Public Offering (IPO) process. What is a SPAC Merger? A…
Special Purpose Acquisition Companies (SPACs) have become a popular tool in global capital markets, particularly in the U.S., where they offer private companies an alternative route to go public. While India’s regulatory framework does not yet fully support domestic SPAC listings, the discussion around them is gaining momentum—especially with SEBI exploring possibilities and GIFT…
In recent years, Special Purpose Acquisition Companies (SPACs) have become one of the most talked-about vehicles in global capital markets. Often called *“blank-check companies,”* SPACs raise capital through an IPO with the sole purpose of acquiring a private company. This allows the target firm to go public without undergoing the longer and more complex traditional…
In recent years, Special Purpose Acquisition Companies (SPACs)—often called blank check or shell companies—have gained global attention as an alternative route for private companies to enter public markets. Unlike traditional initial public offerings (IPOs), SPACs provide a faster and relatively simpler pathway for businesses to raise capital and get listed. What is a SPAC? A…
The Reserve Bank of India (RBI) has emerged as one of the key drivers of sustainable finance in India. Recognizing that climate change is not just an environmental issue but also a systemic financial risk, RBI has been proactive in shaping policies, frameworks, and guidance to help the Indian financial system transition toward resilience and…
