Change in Ownership of Investment Manager

RNS Number : 8300B

India Capital Growth Fund Limited

08 April 2013

 



India Capital Growth Fund Limited ("ICGF" or the "Company")

(a closed-ended investment company incorporated with limited liability under the Laws of Guernsey with registered number 43916)

8 April 2013

Change in ownership of Investment Manager

The Board of India Capital Growth Fund Limited is pleased to announce that an agreement has been signed, conditional only on regulatory approval from the Financial Conduct Authority ("FCA"), for the acquisition of the issued ordinary share capital of the Ocean Dial Group Limited ("ODG") by a new Singapore based company, Ocean Dial Investment Company (Singapore) Private Limited ("ODICS"). Ocean Dial Asset Management Limited ("ODAM"), the FCA authorised UK subsidiary of ODG, holds the contract to manage ICGF.

ODG is currently owned 100% by Caledonia Investments plc ("Caledonia"). Upon completion of the transaction, ODG will be owned by ODICS, a company wholly owned by Mr Raju Shukla and the ODG management team led by David Cornell and Robin Sellers. Mr Shukla served as Managing Director and Country Head of Barclays Capital India from 2007 to 2012 and since then has become Non-Executive Chairman.  Mr Shukla will be subscribing additional capital into ODICS in order to take a controlling stake in ODG.

David Cornell will become the Chief Investment Officer of ODAM and with effect from July 2013 will be based in London. He will continue to work closely with Gaurav Narain as Head of Equities and the other members of the Fund Advisory and Research teams based in Mumbai. The management resource available to ICGF will be further enhanced by the appointment of Sanjoy Bhattacharyya, who has agreed to join as Principal Advisor to ODAM.

Commenting on the transaction,

Fred Carr, Chairman of the Board of the India Capital Growth Fund, said:

"I am satisfied that this transaction not only strengthens Ocean Dial's current structure but enhances its robustness for the future. The successful completion of the transaction will enable the Fund Management and Research teams to continue delivering the improved performance that has materialised since the completion of ICGF's portfolio restructuring. 

I am delighted too that Caledonia has committed to retain Jamie Cayzer-Colvin as its representative on the ICGF Board and has indicated its longer term intentions to support the Company. This support will continue to underpin the stability of the Company to the benefit of all shareholders."

David Cornell and Robin Sellers said:

"This is an excellent opportunity for Ocean Dial. In Raju we have gained a partner and investor who is able to bring value to the company.  With his skill and knowledge of the market place, we plan to scale up the assets under management in equities and in due course in other asset classes too, notably fixed income. Caledonia's continued support through its investment in ICGF and our UCITS open ended fund provides us with a stable anchor investor, around which we intend to build substantial third party assets. The recruitment of Mr Sanjoy Bhattacharyya will add further quality to the management team and evidences Raju's commitment to build "best in class" teams in each field."

Jamie Cayzer-Colvin, Director of Caledonia, said:

"This transaction should empower Ocean Dial's talented management team to grow the funds under management substantially, creating a powerful and successful business.  By way of demonstrating our continued support and satisfaction with the team's investment performance, we intend to remain invested in ICGF and ODAM's UCITS open ended fund and represented on their Boards.  "

Editor's Notes

India Capital Growth Fund

ICGF is a closed ended investment company traded on the AIM market of the London Stock Exchange (SEDOL BOP8RJ6 GB), in which Caledonia and related parties hold a 29.4% stake.  Caledonia remains committed to this investment but, given ICGF's closed capital structure, Caledonia has not been required to evidence this with a lock-in commitment.

Ocean Dial

ODG owns 100% of London based Ocean Dial Asset Management Limited (FCA authorised no. 447424, "ODAM") and Ocean Dial Advisers Private Limited ("ODAPL" registered in India) the research business, based in Mumbai, which provides advisory services to the fund manager in London.  ODAM manages ICGF and an UCITS open ended fund, Gateway to India Fund.

Mr Raju Shukla

Raju Shukla served as Managing Director and Country Head of Barclays Capital India from 2007-2012 and since then has become Non-Executive Chairman, a role he will continue to hold. As Country Head he was responsible for Barclays Capital businesses in India across Corporate & Investment Banking, Sales and Trading.  Raju joined Barclays in 2001 as Head of Investment Banking and Debt Capital Markets for India. He was also a member of Barclays Capital Asia Pacific Executive Committee. Prior to Barclays Capital, he worked at Deutsche Bank in Hong Kong, SBC Warburg and DSP Merrill Lynch.

Ocean Dial management

Robin Sellers is CEO of ODAM in London.  David Cornell is presently the adviser to ODAM based in Mumbai but will return to London as the Chief Investment Officer of Ocean Dial in July 2013.   David's advisory role on the funds will be split, with Gaurav Narain concentrating on India Capital Growth Fund and Sanjoy Bhattacharyya focusing on the Gateway to India Fund.

Mr Sanjoy Bhattacharyya

Sanjoy Bhattacharyya has recently agreed to join the team as Principal Investment Advisor to ODAM, based in Mumbai. Sanjoy has an outstanding track record in listed Indian equities over an extensive period and has managed substantial assets, outperforming in all market conditions. He will work in tandem with the existing research team on all equity products.

Caledonia

Caledonia Investments plc is a self-managed investment trust listed on the London Stock Exchange with net assets of over £1bn.

For further enquiries please contact;

Brokers to the Company

Numis Securities Limited

Nathan Brown; [phone] or [e-mail]

Director, Corporate Broking

Nominated Adviser to the Company

Grant Thornton UK LLP

Philip Secrett; [phone] or [e-mail]

Partner

India Capital Growth Fund Limited

Fred Carr; [phone] or [e-mail]

Chairman

Caledonia Investments plc

Tony Hambro; [phone] or [e-mail]

Ocean Dial Asset Management

Robin Sellers; [phone] or [e-mail]

Northern Trust International Fund Administration Services (Guernsey) Limited

Andrew Maiden; Tel: [phone] or [e-mail]

ENDS.

 

END

 

 

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