Blank check firm set up by Manipal's Pai, PE veteran Ajila raises $170M in US IPO

A special purpose acquisition company (SPAC) launched in the United States by private equity veteran Rohan Ajila and Manipal Group chairman Gautham Pai has raised $170 million via an initial public offering.

The consumer sector-focused special purpose vehicle will acquire companies with significant Asia presence or compelling Asia potential, especially India.

SPACs are known informally as blank check firms and help companies list publicly without taking the traditional IPO route. They have of late become a popular source of funding tech startups with public money instead of using capital from limited partners.


Global Consumer Acquisition Corp (GCAC), listed on the Nasdaq, aims to acquire targets with an enterprise value of $500 million to $1 billion.

“This complements the expertise of our management team in cross-border M&A, business development and Asia/India expansion,” said Ajila, the co-chairman and chief executive of GCAC, in a statement. “The SPAC aims to get a deal done in the next 12 months.”

The firm has already built a pipeline of potential acquisitions, it said, without disclosing details.

Also Read: The phenomenon that is SPACs

The consumer industry provides several interesting acquisition opportunities that it can tap into through its global PE and operator network, GCAC said.

“Today, every company is rethinking their business in terms of technology, supply chain and markets and this provides us specific opportunities,” said Ajila, the managing partner at FIDES Business Partner, a PE firm based in Zurich.

Ajila was also managing partner of Capvent AG, a PE and Fund of Funds investment house that has invested more than $1 billion globally over the last two decades.

“While we may look at additional SPACs in the future, our current focus is solely on making GCAC a success,” he said.

India-focused SPACs are gaining momentum within the investor community.

In March, Think Elevation Capital Growth Opportunities, a blank check company backed by Think Investments and Elevation Capital (formerly SAIF Partners), filed for a $225 million IPO in the United States.

Also Read: Sebi plans to build a dedicated framework for SPACs in India