When ReNew Power, one of India’s leading renewable energy producers, merges Tuesday with Nasdaq-listed RMG Acquisition Corp. II, it is expected to become the first Indian company to raise more than $1 billion by combining with a U.S. special purpose acquisition company (SPAC).

Investors are watching the deal closely because it could pave the way for a slew of similar transactions enabling Indian unicorns to raise billions from global capital markets via joining with SPACs, also known as “blank check” funds, listed on Wall Street.

The ReNew Power deal will raise far more than the two previous SPAC listings involving Indian companies: online travel agency Yatra’s $218 million haul in 2016, and satellite television provider Videocon’s $370 million raise in 2015. The combined entity, which will be known as ReNew Energy Global, is expected to be valued at $8 billion.

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Source: Fortune

By Biman Mukherji and Yvonne Lau