Mumbai: Blank-check companies are increasingly looking to India for acquisition targets, which will keep the country s recent deal-making streak going, according to Nomura Holdings Inc.
ReNew Power last week agreed to merge with a US-listed Special Purpose Acquisition Company (SPAC) in a deal that will give India s biggest renewable power producer an enterprise value of $8 billion. Online grocer Grofers is also looking to go public in the US through a merger with a blank-check company. SPAC-led transactions are expected to increase in the coming years in India, Utpal Oza, head of investment banking for India at Nomura, said. Wherever you ve got businesses which have caught the fancy of international investors especially in sectors such as renewables, tech or e-commerce, where the corporate structure enables it to be merged quite easily, you will see SPAC activity.
Seyfarth Synopsis:
Special Purpose Acquisition Company (“SPAC”) transactions have dramatically increased since the start of 2020, bringing with them risk of securities litigation.
2020 has been characterized as the “Year of the SPAC,” and there is no doubt that SPAC transactions are on the rise.[1] One industry tracker reports that in 2020 there were 248 SPAC initial public offerings (“IPOs”) raising over $83 billion (as compared to 59 SPAC IPOs raising approximately $13.6 billion in 2019).[2] This trend is expected to continue in 2021 with 189 SPAC IPO transactions this year at the time of writing.[3]
We expect this rise in SPAC transactions to be accompanied by the continued filing of securities suits in the coming months and years.[4] Much of the litigation will be no different than typical disclosure-related suits that might follow any public company disclosure, but certain unique aspects of the SPAC structure could create additional litigation risks.
Walmart Inc-owned Indian e-commerce giant Flipkart is exploring going public in the United States through a deal with a blank-check firm, although a traditional stock market listing is much more likely, people familiar with the matter said. The talks for a deal with a special purpose acquisition company (SPAC) are at a very early stage and could fall apart as no plans have been finalized yet, said the people, who declined to be named as the information is confidential. "We have been clear that we support an IPO for Flipkart, but we have not made any decisions on timing, listing venue or methodology," a spokesman for Walmart told Reuters.
The eVTOL Startup Lilium Is Reportedly in Merger Talks With the High-Flying SPAC Qell Acquisition Corp (QELL) wccftech.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from wccftech.com Daily Mail and Mail on Sunday newspapers.