India's leading clean-energy player ReNew Power Private Ltd debuted on Nasdaq in the United States on August 24 as a special purpose acquisition company (SPAC) and achieved a market capitalisation of nearly $4.5 billion (about Rs 33,500 crore), making it the biggest listing for an Indian entity through SPAC.
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 of the eventual acquisition target. Until the time the SPAC makes an acquisition, the money raised is parked in an interest-bearing trust account.
SPAC is the only route through which an Indian company can list on foreign bourses.
Also read: The SPAC Craze: What’s The Big Deal Anyway?
On August 6, Moneycontrol had reported that the US Securities Exchange Commission (SEC), the equivalent of India’s market regulator SEBI, had given the regulatory nod to the mega $8 billion SPAC transaction between ReNew Power and RMG Acquisition Corporation II.
The stock will trade under the ticker “RNW” and was quoted at $8.6 in early trade.
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