Implementation of SPACs in India Key Regulatory challenges.
Special Purpose Acquisition Vehicles (SPACs} have emerged as a promising option to raise public funding from offshore markets. They are especially suited for startups, who otherwise find it difficult to excite the conservative Indian retail investors. This hos become all the more critical as there is evidence that private funding may be drying up and it may be a while before it returns as a substantial source of capital for start-ups. With SPACs, the start-up gets Listed through a reverse merger with a Listed shell company, i.e.,the SPAC, which acquires the start-up. Indian Laws also need to be suitable amended to facilitate overseas fundraising by startups.
SPACS REGULATORY evolution - globally
Globally, SPAC regulations have evolved over the past many years. SPAC structures are more shareholder friendly and have ample fail-safe measures to prevent fraud.
Lock-in periods ensure that founders have some"skin in the game" and minimize agency costs. Successful SPAC listings over the years hove reduced risk perceptions and, consequently, the associated upfront costs, such as underwriter's fee, hos also come down. India has seen a reasonable number of acquisitions by SPAC recently:
Yotra was acquired by Terrapin 3 Acquisition Corp (TRTU, a NASDAQ-listed SPAC. TRTL was Listed on NASDAQ in 2014 and Deutsche Bank was their underwriter.
Videocon DTH was listed on the NASDAQ through a reverse merger with Silver Eagle Acquisition Corp, a SPAC. Silver Eagle was listed in 2014 and Deutsche Bank was their underwriter.
Constellation Alpha Capital Corp., a SPAC, was listed on the NASDAQ in 2017. It is focussed on acquiring a target in healthcare services and manufacturing industry in India. Cowen acted as the underwriter for the offering.
In addition to the above, there have been multiple SPAC acquisitions in India in the past, including:
Denne historien er fra June 2018-utgaven av M & A Critique.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra June 2018-utgaven av M & A Critique.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Raymond Group continues Segregation of its Business Verticals
After successful demerger of \"Lifestyle Business,\" Raymond Limited announced yet another restructuring to unlock further value for stakeholders.
Ultratech Cements adds India Cement in its shopping cart
India's Cement Industry is poised for consolidation. In recent past we have seen multiple large & small acquisitions in cement segment for consolidating positions.
Valor Estate Limited: "Diversification" to "Sepration" of Hospitality Business
“From investments in hospitality business, the demerger transaction will enable VEL to start its construction in hospitality”
SIEMENS Energy to be a separate entity in alignment with global strategy
Siemens AG announced its Vision 2020+ which included the spin-off of its Gas & Power [G&P) i.e., Energy Business into Siemens Energy.
Arvind Group separates its Advanced Material Business for independent growth trajectory
Advanced Material Business (AMD) of Arvind Limited focuses on advanced materials and caters to customer needs across the textile value chain, including specialty yarns, fabrics, and ready-made products.
Merger for bail-out from debt obligation
Ind Swift Limited (herein after also referred to as 'ISL' or 'Transferor Company') is engaged in the business of manufacturing of Pharmaceutical Products.
Batliboi Ltd. merging its associate company
Batliboi Limited has a history of collaborations with various foreign technical partners and has subsidiaries like Hydraulic & General Engineers Ltd. and Batliboi International Ltd. In March 2024, the board of Directors of Batliboi Limited accorded their approval for the merger of promoter owned private company with itself.
TVS Motors issuances of convertible preference shares as bonus instead of dividend
Recently, well known auto manufacturer announced the issuance of preference shares as a bonus to all equity shareholders.
Aditya Birla Fashion & Retails Scheme to undo its consolidation
Corporate restructuring saga continues for Aditya Birla Group.
Advent International to combine its listed & private entity business
Recently, Advent International announced the merger of its privately held pharma company into recently acquired listed pharma company.