Special purpose acquisition company
Figure 4: No Copyright Infringement Intended
Context:
- Byju’s may follow in the footsteps of ReNew Power to list in the US through the special purpose acquisition company (SPAC) route.
About SPAC:
- A special purpose acquisition company (SPAC) is formed to raise money through an initial public offering (IPO) to buy another company.
- At the time of their IPOs, SPACs have no existing business operations or even stated targets for acquisition.
- Investors in SPACs can range from well-known private equity funds and celebrities to the general public.
- SPACs have two years to complete an acquisition or they must return their funds to investors.
- It is a shell corporation listed on a stock exchange with the purpose of acquiring a private company, thus making it public without going through the traditional initial public offering process.
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