Externalisation of India Entity through SPAC
A Special Purpose Acquisition Company (SPAC) was formed in Cayman Islands and was listed in NASDAQ. Target focus of the SPAC was India Digital Companies. SPAC identified a Target in India and approached us for the following:
- In-depth study on feasibility of Indian Company’s merger with the SPAC.
- Post merger, listing of Indian securities in NASDAQ and Shareholding structure of the Group.
- Indian investor’s perspective.
- Tax Efficiency.
Key Challenges:
De–SPAC Mechanics: Tax neutral steps and the same should be in compliance with the respective jurisdictions’ (i.e. USA and India) cross-border exchange control regulations as well as Securities regulations.
Implementation challenges and Solutions: Very few Indian Companies have listed in NASDAQ through De-SPAC process. Our idea did not have a precedence and hence, a foresight of post implementation challenges and the solutions to address the challenges was required.
We were able to successfully advise on the above.
