A Special Purpose Acquisition Company, also known as a "blank check company," is a corporate entity with no commercial operations. It is formed by experienced investors or sponsors with the express purpose of raising capital through an IPO. The funds raised are placed in a trust and are used to acquire a private company, thereby taking it public in a process known as a "de-SPAC" transaction. This offers private companies an alternative path to the public markets compared to a traditional IPO. If a merger is not completed within a set timeframe, the SPAC is liquidated and the funds are returned to the public shareholders.

Founded in

India