India-focused blank check company files for US IPO
Tenzing Acquisition, a blank check company headed by New Silk Route Ventures (NSR) co-founder and CEO Parag Saxena, has filed for a $50 million IPO on NASDAQ. The firm will use the proceeds to invest in companies with a focus on businesses operating in India.
The offering will consist of five million units at $10 each, with each unit comprising one ordinary share and one warrant entitling the holder to purchase one half of one ordinary share at a price of $11.50 per full share. Warrants may be exercised in multiples of two starting one year after the date of the prospectus.
Tenzing has not identified an acquisition target yet, but it is seeking to invest in businesses with enterprise values of $150-500 million operating in fast-growing segments of the Indian economy, including consumer, technology, and services. It will consider both well-performing companies with multiple, diverse potential drivers of revenue and earnings growth, and turnaround opportunities in businesses that are currently undervalued.
If Tenzing has not invested all of the IPO proceeds within 24 months of the closing of the offering, it will redeem the public shares for a pro rata portion of the funds held in the trust account.
In addition to Saxena, several members of Tenzing's leadership have been involved with NSR. Vice President Atanuu Agarrwal is currently a senior associate with NSR, and directors William Campbell and Nina Shapiro are senior operating advisors at the firm. In addition, CFO Gonzalo Cordova is a partner at Vedanta Capital, another venture capital firm founded by Saxena.
Saxena founded NSR in 2006 along with Rajat Gupta. The firm raised a $1.38 billion fund, but became embroiled in controversy when Gupta was convicted of insider trading in 2012. Since then the firm has largely focused on exiting its existing portfolio companies, including trucking firm VRL Logistics – sold in 2016 on the open market – and media distribution company 9X Media, acquired by Zee Entertainment last year for INR1.6 billion ($24.5 million).
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