Moneycontrol PRO
Open App
Live Now | Traders Conclave 2022 | India's Largest Retail Stock Investors & Traders Residential Conclave

Why are firms choosing SPACs over IPOs?

December 28, 2021 / 03:22 PM IST


Ed-tech firm Byju's may choose a SPAC or a special purpose acquisition company to go public, instead of a domestic listing. SPACs raise capital through an IPO and then scout for a company to acquire; the merger makes the latter a listed company by default. When the Indian IPO market is booming, why choose the SPAC way? For one, an IPO takes at least 15-18 months to complete, while SPAC margers can be wrapped up in 3-6 months. The deal price can also be established upfront, which is a relief in a volatile market. The company can also save on capital and effort, since it doesn't have to take out investor roadshows.

Invite your friends and family to sign up for MC Tech 3, our daily newsletter that breaks down the biggest tech and startup stories of the day

Moneycontrol News
first published: Dec 28, 2021 03:22 pm
ISO 27001 - BSI Assurance Mark