Byju’s may follow in the footsteps of ReNew Power to list in the US through the special purpose acquisition company (SPAC) route.
About SPAC:
A special purpose acquisition company (SPAC) is formed to raise money through an initial public offering (IPO) to buy another company.
At the time of their IPOs, SPACs have no existing business operations or even stated targets for acquisition.
Investors in SPACs can range from well-known private equity funds and celebrities to the general public.
SPACs have two years to complete an acquisition or they must return their funds to investors.
It is a shell corporation listed on a stock exchange with the purpose of acquiring a private company, thus making it public without going through the traditional initial public offering process.