McLaren Technologies Acquisition Corp to form more SPACs

US-based McLaren Technology Acquisition Corp, the second Indian promoted Special Purpose Acquisition Company (SPAC) to go for a listing at NASDAQ, says it would be forming multiple SPACs to acquire more Indian start-ups.

“Once we acquire a company they will be listed on the NASDAQ automatically. We will not go back to them after that. We will have more SPACs in future to acquire more Indian companies”, says Sajan Pillai the Chairman and Chief Executive Officer of McLaren Technology Acquisition Corp.

A SPAC is a special purpose vehicle that is used to acquire other companies and help them list on the US stock exchanges.

The SPAC is also looking for more funds from private equity players to fund their acquisitions.

The Special Purpose Acquisition Corp is looking to acquire Indian start-ups in the fintech and insurance space.

It recently raised $200 million to help fund the acquisition of companies in India.

The SPAC is also looking for more funds from private equity players to help fund some acquisitions.

“We will use the $200 million we already have. Over and above that, for whatever else we need, we will approach institutions like Blackrock or Fidelity to help us fund acquisitions”, says Pillai.

However, the SPAC is not very keen on acquiring a majority stake in any company as its intention is not to manage these firms.

“We do not want to manage any company. The management will do their bit to take care of the functioning of the company. We will only help them list on NASDAQ which is otherwise a tedious process”, says Pillai.

The Special Purpose Acquisition Company intends to focus on companies with enterprise values between $600 million and $2 billion.

These firms, once acquired will automatically get listed on NASDAQ.

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