Overseas Listing Through SPACs In India: Retrospection, Evolution And Prospection

Entrepreneurial spirit can be ceaselessly observed to find increasing acceptance in India. The nation, having emerged as the third largest ecosystem for startups across the globe¹ is clearly reflective of the rising spirit for commercial conquest, inclusive of overseas expansion. One of the recent emerging structuring tools to realize the said commercial conquest is through Special Purpose Acquisition Companies ("SPACs").

SPACs are companies that are specifically created to act as instruments to raise funds for unlisted companies through an initial public offering. SPACs combine with such unlisted companies by way of mergers, thereby enabling such companies to get listed without undergoing the conventionally mandated process of listing in stock exchanges. These can be employed for domestic as well as international listing, depending on the validity of SPACs in the concerned jurisdictions.