A Review of Special Purpose Acquisition Company (SPAC) as a Fund-Raising Vehicle and Implementation Issues in India


  • Dr. Parag Kalkar, Dr. Sachin Borgave, Dr. Shweta Jain


Investors in high-risk gambling have been drawn to the developing economies and increase in disposable income. For common IPOs, there is currently a strong bid and a heightened grey market. While listed with a premium listing and occasionally discounted listings, the majority of them go un-allotted to a big number of investors. Investors are eager to invest in initial public offerings (IPOs) and are prepared to ride the highs and lows of the market. In contrast to crowdsourcing, a SPAC is gaining traction in the United States and other developing economies, including India. Startups in India are rapidly clustering, creating a big opportunity for SPACs to make a smart acquisition. On the other hand, floating a SPAC is difficult, and raising capital through a SPAC is even more difficult.