The blank cheque company is sponsored by
CEO Bhargav Marepally and Prabhu Antony, co-founder of Sett & Lucas.
The SPAC aims to acquire its target in the next 12-16 months and has a special emphasis on Indian new-age tech companies with enterprise valuation of $1 billion to $1.5 billion.
“Our plan is to actively involve with companies that have immense scope for growth that are actively looking for growth capital to expand in the Asia Pacific region,” Bhargav said in a press statement.
The SPAC is the latest among blank cheque companies that are looking to take Indian startups public through a listing via acquisition in the US. SPACs have come into prominence over the past year as they raised billions of US dollars in funds from investors promising acquisitions within 2-3 years or money back.
A SPAC is an investment vehicle used by institutional investors to raise money for potential acquisitions. Investors who invest in such instruments are not aware who the eventual acquisition target will be.
Until the time the SPAC makes an acquisition, the money raised is parked in an interest-bearing trust account. Once the SPAC makes an acquisition, investors get the option to swap their existing shares for the merged company’s or liquidate it for returns.
In the event a SPAC is unable to complete an acquisition within the stipulated time, the money is returned to investors along with the interest earned.
